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However reasonable your suspicions, it’s necessary to set them aside and handle the request as a request for a reasonable accommodation. Communities may enforce policies to ban or restrict pet ownership, but it’s unlawful to refuse reasonable and necessary accommodations to residents who need assistance animals to help them with their disabilities.

If in doubt about whether the resident has a disability-related need to keep an assistance animal, you should ask for more information so you can respond properly to the request. Rejecting it out of hand can only lead to fair housing trouble.

Example: In January 2015, HUD charged a Brooklyn cooperative community with discriminating against a veteran with a psychiatric disability for refusing to let him keep an emotional support animal. According to HUD, the community wrongfully denied the resident’s request for a reasonable accommodation even though he provided medical documentation verifying his condition and need for the dog and took steps to evict him and his wife in retaliation for filing a fair housing complaint. The case will be heard by an administrative judge unless either party takes the case to federal court [Secretary, HUD v. Trump Village Section IV Inc., January 2015].

If the resident qualifies for a reasonable accommodation to keep an assistance animal, then you’ll also have to waive any extra fees or deposits under your pet policy. According to federal guidelines, communities may not require individuals with disabilities to pay extra fees or security deposits as a condition of allowing them to keep an assistance animal as a reasonable accommodation. If you insist that the resident must pay the pet fee to keep an assistance animal, then you could be hit with hefty penalties.

Example: In November 2014, the owners and manager of a Washington community agreed to pay $25,000 to resolve allegations that they refused to grant a reasonable accommodation to waive a $1,000 pet deposit for a resident with mental disabilities who needed a dog as an emotional support animal. Allegedly, they refused to grant the waiver despite numerous attempts by the resident to provide documentation of her disability and her need for the emotional support animal. The complaint also accused them of retaliating against her for filing a fair housing complaint with HUD [U.S. v. Barber, November 2014].

Though dogs are at the center of many fair housing cases, you should be prepared for requests to keep cats, birds, ferrets, reptiles, and other types of animals as assistance animals. According to HUD, species other than dogs, with or without training, and animals that provide emotional support have been recognized as necessary assistance animals under fair housing law.

By:  The Oregonian Editorial Board

Printed 9-16-18

Portland's elected officials are doing their part to promote the $652.8 million regional housing bond going to voters this November. They have contributed to  the campaign, offered their heartfelt support in public meetings and signed on as official endorsers for the bond.

But if they really want to help get and keep families housed, they should focus on how their own policies stand in the way. Because regardless of the bond's success or failure, the duration and severity of this housing crisis hinge on whether leaders encourage the market as a whole to add more housing or quash it.

Unfortunately, a sweeping proposal being developed by Portland City Commissioner Chloe Eudaly falls squarely in the latter category.

Eudaly announced months ago that her office was looking at the process with which landlords screen potential tenants. The intent, policy director Jamey Duhamel told The Oregonian/OregonLive Editorial Board, is to ensure fair rental practices while helping needy renters, whose monthly income, criminal background, or credit history would typically turn off potential landlords.

The motivation seems understandable. The method, however, leaves much to be desired. Eudaly's eight-page proposal as currently drafted is heavy-handed, overly complicated and forces so much financial and legal risk onto landlords that many may opt to leave the rental business altogether. And the bigger question remains: How do these policies make housing any more affordable?

Among the many concerns in the latest version released: landlords aren't allowed to require that applicants show a monthly income of more than twice the monthly rent, even though three times monthly rent is more typical as assurance that a tenant can afford the payments. 

Landlords must go through an extensive and confusing matrix of questions in evaluating whether an applicant's criminal history merits a denial. And landlords must issue a written explanation to tenants who are denied after being vetted. The "notice of denial" must detail the reasons for turning down the applicant and establish that they are "highly and substantially more probably to be true than not that the applicant as a tenant will adversely affect the substantial, legitimate, non-discriminatory interest of the landlord."

It's not just a daunting set of poorly-written requirements. It's also an invitation to rejected applicants to sue.

Duhamel said Eudaly's office is focusing on how to "fine-tune" the proposal, which is tentatively scheduled to go before the City Council next month, to ease the administrative burden. But the flaws in the policy aren't going to be fixed by fine-tuning. The problems are baked into the fundamental assumptions underlying the policy.

For example, the screening proposal seems to assert that the city - not landlords - should get to decide how much financial risk landlords should bear. Citizens have not and should not hand over that kind of authority to city commissioners who believe their policy choices trump an individual's financial autonomy.

It also fails to consider that there are many landlords and affordable-housing groups that already accept tenants with criminal histories or credit problems. They do so not by following a rigid list of criteria but after considering the mix of tenants or other location-specific issues that make a tenant more suitable in one building than another.

And it neglects to address the underlying reason that people are struggling to find affordable places to live - a lack of housing on every income level caused by years of underbuilding. Instead, such onerous mandates on landlords - with limited ways to protect against the risk - could prompt some to drastically raise rent when units become vacant or take the property out of the rental market entirely.

Duhamel said that, in her opinion, only a handful of landlords would likely get out of the business altogether, dismissing "what if" concerns as "fearmongering." But she acknowledges the city has no data on how a previous policy - mandatory relocation assistance to tenants whose leases are not renewed - may have affected the rental market.

Others, who admittedly represent the landlord viewpoint, say it has definitely led to the loss of many rentals. Since the beginning of the year, 30 landlords who used the Garcia Group property management firm decided to sell their properties, owner Ron Garcia told The Oregonian/OregonLive Editorial Board. That's a tenth of the ownership portfolio, he said, and many of the properties were condos or single-family homes that likely went to buyers seeking to occupy, rather than rent, the property.

The region's housing crisis is real with thousands of homeless people living on the street and many more on the brink as wages don't keep pace with rent. But landlords' screening policies aren't the reason Portland is in a housing crisis. Leaders should focus on the true culprit - the need for more housing at all income levels - and make sure they don't unwittingly become an accomplice.

-Helen Jung for The Oregonian/OregonLive Editorial Board

[Update: The Multnomah County Board of Commissioners has passed Ordinance 1296, which changed the 60-day window to 90-days for the Pause on Notices and Evictions, as described below. This Ordinance became effective on July 9, 2021 and only applies to tenants residing in Multnomah County. Timeframes are updated below.]

In mid-June, the Oregon Legislature passed another bill, SB 278 which accomplishes three things:

1) It provides a 60-day window in which a tenant seeking rental assistance may not be evicted for nonpayment of current (i.e., non-moratorium related) rents, charges and fees;

2) It provides a method for landlords impacted by the 60-day delay (discussed below) to recoup lost rents, charges and fees if the tenant does not qualify for rental assistance; and

3) It directs the Landlord Compensation Fund to pay the full 100% rent loss on applications to the program.

The Multnomah County Board of Commissioners recently passed Ordinance 1296. It made the following change to SB 278 for tenants residing in Multnomah County only: It extended the timeline following Landlord’s receipt of documentation of Tenant’s application for rent assistance from 60 to 90 days before which service of a 10-day Notice of Nonpayment of Rent or filing of an Eviction is permitted.

Notices and Evictions: 60-Day Pause (or 90 days if in Multnomah County)

Application. SB 278’s 60-day delay, and Ordinance 1296’s 90-day delay (for Multnomah County), for eviction proceedings only applies to notices of termination for nonpayment given on or after July 1, 2021.

My Definitions.

“Moratorium Debts” are any unpaid rents, charges, and fees that have accrued between April 1, 2020, and June 30, 2021. (This is my term; it is not in the bill. Many of the Legislature’s Bills refer to “nonpayment” but with different meanings.)

“Current Rent” includes any rents, charges and fees, described as a “Nonpayment” that come due on or after July 1, 2021. (This is also my term to avoid confusion. It is not in the bill.)

SB 278 Definitions.

“Nonpayment” refers to the nonpayment of sums due to the landlord, including payment of rent, late charges, utility or service charges or any other charge or fee described in the rental agreement, including the following statutory sums:

ORS 90.140 (Types of payments landlord may require or accept),
ORS 90.302 (Fees allowed for certain landlord expenses or tenant non-compliance), ORS 90.315 (utility or service payments),

PAGE - 1

ORS 90.392 (termination of tenancy for cause),
ORS 90.394 (termination of tenancy for failure to pay rent),
ORS 90.560 to 90.584 (provisions for various utilities and service charges); or ORS 90.630 (termination by landlord: manufactured dwelling or floating home).

“Documentation” includes electronic mail, a screenshot or other written or electronic Document- ation from a rent assistance provider.1 The definition of “documentation” above is straight from the Bill and relates to the procedure whereby the tenant applies for rental assistance and receives a receipt which is provided to the landlord.

60-Day Termination Pause (or 90 days if in Multnomah County). A tenant who is falling behind (or is in danger of falling behind) in paying their Current Rent may apply for rental assistance and provide the appropriate Documentation to their landlord. Tenant need only demonstrate that he/she applied for rental assistance in order to receive the 60-day pause (or 90 days if in Multnomah County). Upon receipt of the Documentation the landlord may not, for the next 60 days (or 90 days if in Multnomah County):

• Deliver a termination notice for nonpayment, or
• Initiate or continue an action for possession (i.e., an FED) based upon a termination

notice for nonpayment.

Eviction Protection Notice. This is a new statutory notice regarding eviction protection that is required to be delivered with:

• Any notice of termination for nonpayment of rent; and
• Any summons for a complaint seeking possession based on nonpayment of any sums

due to the landlord which are classified under the term “nonpayment” as defined above.

The court system will translate the notice into Spanish, Korean, Russian, Vietnamese and Chinese. The translated notices will be available on their main webpage www.courts.oregon.gov. The court clerk is also required to mail these notices with any summons and complaint mailed to a tenant from the Court.

Tenant Delivery of Documentation. The tenant may deliver the Documentation (including but not limited to, copies, photographs, screen shots, etc.) by email, text message, or any other “method reasonably calculated to achieve receipt by the landlord.”

Timing of Documentation.

• If the tenant provides the appropriate Documentation prior to the Landlord issuing a

  notice of termination for nonpayment, the landlord must wait 60 days (or 90 days if in Multnomah County) after receipt of the Documentation to issue any notice of termination for nonpayment.

• If the tenant provides the appropriate Documentation after the issuance of a notice of termination for nonpayment the landlord may not act upon that notice of termination or initiate an FED action based on the nonpayment. In order to terminate a tenancy after

  1 The Housing and Community Services Department is funneling federal, state, and local funds to many different “rent assistance providers,” including public bodies, local governments, and subgrantees (i.e., agencies and non-profits). They will provide a receipt to verify the submission of an application for rental assistance.

  PAGE - 2

expiration of the 60-day period (or 90 days if in Multnomah County), the landlord must issue a new notice of termination
o If 60 days (or 90 days if in Multnomah County) elapsed since the landlord received

Documentation, the landlord need not provide a new Eviction Protection Notice.

(TIP: If in doubt about whether the new Notice was included the first time, include

it after expiration of the 60 or 90-day pause; there is no risk in doing so.)2
• If the Tenant provides Documentation to the landlord or the Court after the eviction proceedings have already begun, the court will stay the proceeding, and reschedule a first appearance for a date following the 60-day period (or 90-day period if in

Multnomah County). Trial may occur promptly thereafter.

Dismissal of Eviction for Nonpayment. The court shall dismiss an FED action based upon a notice of termination for nonpayment if:

• The landlord failed to provide the new Eviction Protection Notice;
• The landlord “substantially caused” the tenant’s nonpayment by refusing to

“reasonably participate with a rental assistance program”;
o Note: Landlord is not required to apply for the Landlord Compensation Fund, so

the failure to do so cannot be used to claim the landlord “caused” the tenant’s

nonpayment.
• The landlord receives rental assistance covering the rent owed under the notice; or
• The tenant had provided the Documentation before the FED (or action for

possession)was filed.

Penalties for Landlord Violation. A violation of SB 278 will result in the tenant being able to pursue injunctive relief to recover possession or address any other landlord violations and will give the tenant a defense in an action for possession.

Tenant Not Entitled to Costs, Attorney Fees, or Prevailing Party Fees. Actions dismissed under these rules will not result in a tenant recovering costs and fees if:

• The landlord delivered all required notices (i.e., the new Eviction Protection Notice)
• The landlord did not know, or have reason to know at the time of commencing the

action, that the tenant had already provided the required Documentation; and
• The landlord promptly dismissed the action upon becoming aware of the

Documentation (Note: All three must occur.)

Dated Receipts of Application for Rental Assistance. SB 278 also directs that all programs providing rental assistance will promptly provide a dated receipt for the tenant’s application.

Repeal. These SB 278 and Ordinance 1296 rules will automatically be repealed on March 1, 2022.

2 Note: The Eviction Protection Notice is called “new” because the previous Bill, HB 4401, also required a Notice of Eviction Protection (along with the Declaration of Hardship). However, this is not the same form, although the caption of the form also says, “THIS IS AN IMPORTANT NOTICE ABOUT YOUR RIGHTS TO PROTECTION AGAINST EVICTION FOR NONPAYMENT.” Essentially, SB 278 created a similar, but completely new form, that I have called the Eviction Protection Notice to avoid confusion.

PAGE - 3

Landlord Compensation

Funding for the 60-Day Pause. SB 278 directs the Housing and Community Services Department to make funds available to a third-party provider (yet to be determined) to compensate landlords for their potential 60-day loss of revenue. To receive the compensation a landlord must demonstrate that:

• The tenant’s rental assistance application was denied; or
• Sixty (60) days have elapsed since the tenant provided their Documentation to the

landlord, and that the landlord has not received assistance.

[Note: Though Ordinance 1296 changes the 60-day window to a 90-day window for notices of termination and evictions for nonpayment in Multnomah County only, it does not make any changes to the portion of SB 278 that addresses landlord funding for the 60-day pause. It is unclear at this time how, or whether, the state will address Multnomah County’s rule in awarding funding for landlords whose tenants have not received assistance.]

Repeal of 60-Day Delay Compensation. Funding for landlords experiencing losses during 60-day pause will be automatically repealed on March 1, 2023.

Landlord Compensation Fund for Moratorium Debts. Originally HB 4401 provided that landlords could receive compensation for 80% of their tenant’s outstanding Moratorium Debts (rents, charges, and fees incurred between April 1, 2020, and the date of a landlord’s application to the fund – or June 30, 2021, at the latest). The last date to apply to the Landlord Compensation Fund (the “Fund”) was June 23, 2021.

To receive consideration for funding under HB 4401, the landlord had to agree to forgive 20% of the tenant’s debt. SB 278 now directs the Fund to pay 100% of the past-due rent due from qualified tenants that the landlord has not collected after April 1, 2020, and on or before the earlier of June 30, 2021, or the date of the application.

• Under SB 278 landlords are no longer required to agree to forgive 20% of their tenant’s Moratorium Debts.

• Landlords must still repay the Fund for any repayment of Moratorium Debts they receive from, or on behalf of, a qualifying tenant.

  Retroactive Application of 100% Coverage. The new rule requiring the Fund to pay 100% of past due Moratorium Debt applies to all applications approved on, before, or after the effective date of SB 278, which as an “emergency bill”, became effective on June 25, 2021, the date of the Governor’s signature.

  Furthermore, it directs the Fund to pay the remaining 20% of any applications for compensation already made under HB 4401 that were already approved prior to the passage of SB 278, without the need for an additional application.

PAGE - 4

[1] The Housing and Community Services Department is funneling federal, state, and local funds to many different “rent assistance providers,” including public bodies, local governments, and subgrantees (i.e., agencies and non-profits). They will provide a receipt to verify the submission of an application for rental assistance.

[2] Note: The Eviction Protection Notice is called “new” because the previous Bill, HB 4401, also required a Notice of Eviction Protection (along with the Declaration of Hardship). However, this is not the same form, although the caption of the form also says, “THIS IS AN IMPORTANT NOTICE ABOUT YOUR RIGHTS TO PROTECTION AGAINST EVICTION FOR NONPAYMENT.” Essentially, SB 278 created a similar, but completely new form, that I have called the Eviction Protection Notice to avoid confusion.

Answer: One issue is accepting rent from a possessor after the legal tenant has gone. This can occur, for example, where someone is residing at the space under a Temporary Occupancy Agreement, but the approved tenant, no longer resides there. Alternatively, the person could be a lawful visitor, who has overstayed their permitted time, and the legal resident has left. ORS 90.403 deals with this:

90.403 Taking possession of premises from unauthorized possessor. (1) If an unauthorized person is in possession of the premises, after at least 24 hours' written notice specifying the cause and the date and time by which the person must vacate, a landlord may take possession as provided in ORS 105.105 to 105.168 if:

(a) The tenant has vacated the premises;

(b) The rental agreement with the tenant prohibited subleasing or allowing another person to occupy the premises without the written permission of the landlord; and

(c) The landlord has not knowingly accepted rent from the person in possession of the premises.

(2) Service of notice under this section does not create a right of tenancy for the person in possession of the premises. [2005 c.391 _12] (Emphasis added.)

In this case, it can be fatal to a landlord's effort to remove that person if rent is accepted. If rent is in the form of a check, cash or money order, I can think of no reason to accept it. Period. Since the person is an unlawful occupant, I'm not concerned that there is no rule on it, since the statute clearly gives you the legal entitlement to evict.

The other issue arises when a lawful resident resides in the space, but they have an occupant who has not been approved as a co-tenant or a temporary occupant. If you are going to accept them as a temporary occupancy, get them on a Temporary Occupancy Agreement. You can do a criminal background check, but not a financial one, since they are there not to subsidize the tenant's rent, as in co-tenancy. Accordingly, do not accept rent in any form from temporary occupant, unless it is drawn on the tenant's sole account and the check bears that out.

As to unlawful occupants who are staying at the space, but have not been approved as a tenant, the issue of the form of payment misses the larger point - which is waiver. If the person is unauthorized, and you know of their occupancy, insist that they apply for tenancy, and make sure they do not stay beyond the time allowed for visitors under the park rules. The issue of waiver is not just a question of accepting a check from the unapproved person. Acceptance of rent from the lawful tenant when you know he or she is housing an unapproved person, can also result in waiver.

ORS 90.412 provides in part:

(2) Except as otherwise provided in this section, a landlord waives the right to terminate a rental agreement for a particular violation of the rental agreement or of law if the landlord:

(a)During three or more separate rental periods, accepts rent with knowledge of the violation by the tenant; or

(b)Accepts performance by a tenant that varies from the terms of the rental agreement.

(3)A landlord has not accepted rent for purposes of subsection (2) of this section if:

(a)Within 10 days after receipt of the rent payment, the landlord refunds the rent; or

(b)The rent payment is made in the form of a check that is dishonored. (Emphasis added)

So the take-away here is that you do not want to accept rent from anyone, even the tenant, when you know they are violating the rules, such as keeping an unapproved occupant at the space. If you accept rent from the lawful tenant under these circumstances, return it within ten days after receipt - if the check has been cashed, write a new check back to the tenant with an explanation, and demand that the unpermitted person apply for tenancy. Under the statute, waiver will not occur for the first two events of accepting the rent without returning is within ten days. The third or subsequent time can constitute a waiver. Waiver does not occur if the rent is properly returned within the ten day period, no matter the number of times it's tendered.

As for taking a rent check from the unapproved person, I don't recommend doing so unless the check is drawn on the tenant's own account. If it's a joint account with the unapproved person, don't accept it. The same holds true of any other form of payment (e.g. cash or money order) unless there is clear evidence that it came from the lawful tenant. Just remember, though, that acceptance of rent from the lawful tenant - in any form - can count as a waiver under ORS 90.412 if you know they have an unlawful occupant at the space.

As for a park rule, I think it's always a good idea to have a rule about the time, place and form of payment. It's OK to say non-residents cannot pay the space rent for residents, but even without such a rule, I believe you are within your rights to refuse payment. Rent is defined at ORS 90.100(37) as follows:

Rent means any payment to be made to the landlord under the rental agreement, periodic or otherwise, in exchange for the right of a tenant and any permitted pet to occupy a dwelling unit to the exclusion of others and to use the premises. (Emphasis added.)

Since the payment from the unauthorized resident is not from a "tenant", and not pursuant to the "rental agreement", and not "in exchange for the right to occupy" the space, it's my opinion that, with or without a rule to this effect, you are within your rights to reject it, regardless of form.

On July 6, 2023 the Oregon Legislature passed SB 611 which lowered the existing cap on annual rent increases for residential tenancies.  With the Governor's signature the bill is now the law.

Every year in late September, the state of Oregon calculates a maximum rent increase for residential tenancies based on the preceding year’s September Consumer Price Index for the West Region (CPI). The formula is a base of 7% plus the CPI. Typically, this results in a maximum rent increase of around 9%. Last year, due to pandemic-related inflation the CPI shot up to 7.6%, resulting in a maximum allowable residential rent increase for 2023 of 14.6%.

A new 10% cap has gone into effect as of July 6, 2023. Any rent increases going into effect from this date until December 31, 2023 may not be more than 10% [see note about rent increases in the City of Portland, below]. The new rental cap for 2024 will be calculated and published by the State of Oregon in the fall.

New Cap: SB 611 retains ORS 90.600’s the statutory formula of 7% plus the CPI, however residential rent increases will now be capped at 10%, regardless of whether the CPI exceeds 3%. All tenancies subject to ORS 90.600, except week-to-week tenancies, are subject to the following rules:

1. A landlord may only increase rent with written notice to the tenant at least 90-days prior to the rent increase; and
2. A landlord may not increase the rent more than once in any 12-month period.

Exemptions: Landlords are exempt from the rent cap under two circumstances:

1. The first certificate occupancy for the unit was issued less than 15 years from the date of the notice of rent increase; or
2. The unit is affordable housing under a federal, state or local program and the increase in rent:
   1. Does not increase the tenant’s portion of subsidized rent; or
   2. Is required by the federal, state, or local program or because of a change in the tenant’s income.

If a landlord is claiming exemption from the cap on the grounds mentioned above, the exemption must be noted in the 90-day rent increase notice.

City of Portland: Landlords in the City of Portland should note that the new statewide 10% rental cap does not override the City of Portland’s Relocation Assistance Program requirements under  Portland City Code 30.01.085(c). Any rent increase of 10% or above, even if allowed under SB 611, will trigger a requirement that the landlord pay relocation assistance if their affected tenants request it. There are limited exemptions to Portland’s 10% increase rule. Landlords should consult with an attorney to inquire about exemptions before increasing City of Portland rents more than 9.9%.

The importance of customer service can vary depending on the product or service, customer or industry. The manufactured housing industry can provide a customer with many areas of satisfaction. We have the opportunity to provide a nice, safe community to live in. We provide housing for first time home buyers, the family that needs more home choices for a better price, or just simply, an empty nester that wants to down size. Let's face it, we can provide all the features and products, but it's the level of service that helps influence the customer. Here are some customer services skills to remember when you're working with a customer.

• You should have patience. Take the time to truly figure out what they want. They'd rather get competent service rather than be rushed out the door.

• Be Attentive. Listen to your customers, and pay attention to their body language or terms used to describe their problems or concerns. Consider this,"what it is that your customers are telling you without saying it".

• Have Clear Communication. It's okay to find out about your customer, but make sure you're getting to the

  problem at hand. When it comes to important points that you need to relay clearly to customers, keep it

  simple and leave nothing to doubt.

• Use positive language. It's an important part of persuasion; customers create perceptions about you and

  your company based off the language that you use. Here is an example without positive language: "Our home site is not available at this time, so we have no vacancies.'' Here is an example with positive language: "We have a resident that is removing their home next month, and we will have a vacant home site. We can submit your application for the community, and once we have the approval we can reserve the site for you." Small changes that utilize "positive language" can greatly affect how the customer hears your response. The first response was abrupt and impersonal and can be taken wrong by customers. The second example is stating the same thing, but focuses on when and how the customer will get to their resolution rather than focusing on the negative.

• Acting Skills. Every great community manager or sales representative will need the acting skills necessary to maintain their usual cheery persona in spite of dealing with some people who may be just plain "grumpy".

• Have the ability to Read Customers. You won't always be able to meet your customers face-to-face, and in today's world, you may not hear a customer's voice. However, you still need to understand the basic principles of behavior, the psychology to reading your customer's current mind set. This part is known as the personalization process, it takes knowing your customers to create a personal experience for them. This skill is essential, if you miss-read them, you might end up confusing them, and then you could lose them. Look, read and listen to subtle clues about their current mood, patience level and personality, your customer interactions will be more positive.

• Be a Calming Presence. Do not let a heated customer force you to lose your cool; your job is to do your best to be the "rock" for customers who think the world is falling down around them.

• Have Tenacity. Put in the extra effort. Your driving motivator should be, never "cheat" your customers with lazy service.

• Willingness to learn. Those who don't seek to improve what they do, whether it be property management or marketing a product, will get left behind by the people willing to invest in improving their skills.

These are just some of the skills of providing good customer service. They take practice, but once you have mastered them, you will find that your customers will appreciate the experience they had with you.

Tom Petitt is Vice President of Commonwealth Real Estate Services. He can be reached at:

18150 SW Boones Ferry Road

Portland, OR 97224

503-244-2300 Fax 503-768-4660

One of the measuring sticks of great managers, as well as great regional managers, is their ability to be friendly while at the same time, keeping their eyes firmly upon the objectives of the community. The responsibilities of property management are immense and sometimes thankless. It is hard to believe that any of us could add another thing to our schedules to strive for better resident relations. But we must, and we must go at it with an eager, devoted, and intense passion to be successful. The only way to achieve this and still maintain the quality of the community is great organizational skills, resident, participation and the initiative to be creative.

No matter how large or small a community and its budget, the following simple steps will bring a community to its peak performance and create strong resident relations.

Get the Residents Involved

Make photo albums or scrapbooks of residents enjoying their community or community activities. Seniors enjoy donating photos from their past and the fun time they've had with neighbors or friends. Residents can form a photography club to take pictures of all community events, funny resident situations and neighbors helping one another. Photo clubs are a good source for pictures submitted by residents. Volunteers can help with the collection of photos and putting together the album. Display the album(s) proudly in the activity center or community lounge area for all to enjoy. Managers should look through the books from time to time to ensure quality content.

Encourage residents to write positive letters or stories about the community. Resident writings can be collected in an attractive album, which is also to be displayed in the community activity center. When the letters have been submitted, ask if they may be used in the community newsletter. Pick one letter a month to exhibit in an attractive picture frame under the caption, "Letter of the month" or "Why we enjoy living in this community."

Create a journal to pass around the community (it may be a spiral notebook) for all residents to write in. A note stating the topic should be firmly attached on the outside of the journal for all to read before inserting thoughts. The note may ask for how long the resident has lived in the community and a short biography. Encourage the use of photos or themselves, their families and/or pets. The final instruction should be "When you are finished with your thoughts, please pass this on to your neighbor. If you do not wish to be a part of this project, please call the community office, and we will pick it up." The notebook should be placed inside a weatherproof cover and given to the first home in the community. Many 55+ communities have seasonal residents. You might want to wait to start until they return, so all may participate.

If your community activity center has a television set and VCR, you can host movie matinees on adverse weather days. Rent a latest release (within the confines of movies seniors love), make popcorn for all (no salt or butter) and offer a non alcoholic beverage. Make sure the television is placed where everyone may comfortably view it, such as a stage as or the center of the room, and make the viewing room dark. What other thoughtful task can one do for less than $20 that gives joy to so many residents?

Everyone loves to show off their pets, especially seniors. Host a pet show. Purchase certificates and first, second, third place ribbons to award. Volunteers may acquire donations from local pet stores or other businesses to be awarded as prizes. Use an outside volunteer to pick the winners based on show, grooming, posture and training. Participants of local pet shows may be willing to volunteer their time to judge.

The same idea can work for a car show. Many residents have classic cars of which they are very proud. You may want to look in your local auto trader magazines for people who host car shows professionally. Many communities are looking for locations to hold their shows, complete with DJs, prizes, emcees and media. Use the same ideas from the pet show for great results.

Consider opening your clubhouse to local hobbyists. Most cities have model train clubs, remote-control airplane clubs, coin collectors and other hobbyists who are always looking for new places to meet and show off their labors of love. This effort provides seniors a pathway back to their childhood.

Keep yourself involved

In 55+ communities, residents are more interested in local government and have the time to help coordinate and change issues of concern. Some merely need the leadership and backing of the property owners or managers and the knowledge of who to contact to start the ball rolling. Cooperation of managers and residents can create great things and bond them together for the common good of everyone.

Perhaps the very best resident relations trick is getting outside the comfortable walls of the community to make changes that affect all the residents. If there are local or state issues of concern to manufactured housing communities or their residents, they need to get involved. Our government works for us, and is more likely to listen than it is often credited as being. One method toward such change is finding a government official who truly cares or is up for election. Their voters live in our communities. Working with the government takes patience and dedication. Although this kind of dedication may be very time consuming, in 55+ communities it is just as valuable as anything else a property manager does.

Start by reading every government mailing received. Items come up for vote on a regular basis that often negatively affect seniors and are addressed in a public forum prior to election. These forums are great opportunities for retirees and managers to give input toward change. Retired residents have the knowledge, spirit and time to investigate, preparing everything it takes to help present ideas in public forums.

Read all the fine print on every utility bill. Rates may increase and go unnoticed. If the utility companies are approached when proposing these changes, very often they may be overturned. It is not hard to present options to officials devising change. For example, in 1992 the managers of a small senior community discovered the water department offered water-leak rebates for site-built homes, but did not offer any solution to water leaks in manufactured housing communities with master meters sub-metered by the community.

With little effort this issue was approached, and the property managers found the city water department to be very cooperative in helping to resolve this problem. Today, a program is in place for all the residents in the city under these conditions, to receive rebates when residents have water leaks.

The same situation happened in a large Florida county. Residents in mater-metered communities also could not receive water leak rebates. Given the equation for determining sewer rates, when residents had leaks, the charges were exorbitant. This seriously affected the fixed-income seniors in the county. In 2000, because of a cooperative effort between water department, community management, and the homeowner's association of a 55+ community, this oversight was resolved. The effort only took a few phone calls, two meetings, a couple of faxes and the designing of a form that would work for the county and the community. Within 30 days of the community's first request, a program was in place for the entire county making it possible for all residents to receive rebates on water leaks.

In 1997, a county water department implemented an ideal way to dispose of waste water by a unique filtering system, then piped the filtered water throughout the county to be used for irrigation (reclaimed water). The process cost the county millions of dollars in construction. The county water department proposed a lengthy, complicated billing system to its customers, in the form of a "base rate." The proposed rate would have a devastating effect to senior residents in manufactured housing communities under the same metering conditions as described above because the master-metered system is considered "commercial".

Many phone calls were made by two community managers, in an attempt to find someone in the water department willing to explain the complex proposal, and willing to work with the communities to lower the billing rate. This six-month process required many meetings with the water department and a dedicated effort to get all the affected communities involved in the process. Today, as a result of this effort, all of the manufactured housing communities in that county now have a new category for billing commercial at residential rates. This new category lowered residents' base rate more than half of the original proposed increase. This lower rate was a big help to set-income seniors.

Keeping the media involved

Local TV media and newspaper reporters are always looking for human-interest stories. Every time a manager discovers a resident who has done something extraordinary, the media needs to be alerted. This includes Senior Olympics medalists, golfers who shot holes in one, shuffleboard champions and bowlers with a 300 game or a high series. Press releases should be sent to local papers to thank residents for special things they do in the form of "Volunteer of the Month" or "Hero of the Month." You might also want to invite the media to special events, such as National Night Out or other unique activities. Not only does the media coverage give residents a terrific boost, it is the best free advertising available.

These ideas and the examples above prove dedication and cooperative efforts between managers, residents, government officials and media to preserve and enhance the lifestyle seniors worked tirelessly to earn. What better way to thank the people who shaped our world, than to work passionately to help preserve the lifestyle for which they worked so hard. Home is where they should feel safe, respected, cared for and appreciated. Home is what we are to provide.

Reprinted from MHCO "Community Management"

Supply and Demand

The primary drivers of this sales activity are the usual suspects: supply and demand. In the past couple decades, the cost to develop new manufactured home communities in Oregon (and most of the U.S.) has risen to the point that it is impossible to generate a compelling financial return with a newly constructed park. Add to that the number of parks that are closed, or redeveloped to other uses, and it's clear that we operate in a market with a very restricted current supply - and no future new supply.

Meanwhile, demand for parks is climbing.

According to United Van Lines, Oregon is the most-moved-to destination in the United States for the past two years. If you are buying or selling real estate in Oregon, you likely already know this! People really want to live here.

The Multifamily NW Apartment Report released this spring shows falling vacancy rates in every Oregon/SE Washington market it surveys. Vacancy in Portland/Vancouver, Salem, and Eugene averages just under 3%. Bend is seeing 1.5% vacancy rate... and dropping!

Another recent factor driving demand is the influence of Wall Street and investment fund managers. In 2003, Berkshire Hathaway purchased Clayton Homes and inserted its influence in a big way; designing, building, selling, and financing manufactured homes. This single event began to alter the perception of investing in manufactured home communities.

Fast forward to now: the largest private equity group in the U.S. -- the Carlyle Group - is investing in mobile home parks; Sam Zell, the billionaire American business magnate, is the largest owner of mobile home parks in this country; and Clayton is still crushing it as the largest source of new modular and manufactured homes in the nation.

We've seen out-of-state interest surge right here in our market: At Western Equities, we've closed on $11,000,000 of mobile home park sales in the past year - with just one of our buyers! This buyer is a private equity fund manager, and he has another $10,000,000 committed in offers or pending sales with us. High-power investors like this have, collectively, a tangible effect the mobile home park sales market.

Effect on the Market

Not surprisingly, the limited supply and growing demand for parks has pushed sale prices up, and Cap Rates down. Prices up, and Cap Rates down? That's a seller's market!

"Cap Rate" is short for Capitalization Rate, which is the rate of return if an investor were to pay cash for the purchase price. Cap Rate is the most important initial indicator of the return on investment a property will produce. The formula to determine Cap Rate of a property is Net Operating Income (NOI) divided by Purchase Price.

Cap Rates vary widely with the unique nature of mobile home parks - and reliable cap rate data is available for only about half of the parks sold on the market. Investors and brokers in today's market are seeing steady cap rate compression in a majority of Oregon markets. For healthy parks in strong locations, the Cap Rate range in 2010 was typically between 7-8 _ %. Today, those parks tend to sell at 6 to 7% Cap Rate, or even lower.

One recent sale really affects the 2015 YTD Oregon Cap Rate and price per space averages: Songbrook, a 140-space, award-winning manufactured home community sold on June 10th for $13,800,000 - a stunning $98,571 per space, and a 5.0% Cap Rate! Songbrook was developed and sold by Troy Brost, a noted industry expert who has been a past board member and president of MHCO.

Large parks tend to be well-capitalized, in larger towns or cities, with very low vacancy, less collection loss, fewer deferred maintenance issues, and a significant management operation. Essentially, there is lower investor risk, so the returns are smaller.

Nationally, big funds managers and institutional investors are looking to 'park' multiple millions of dollars, and because of low returns in other investment options, that money is increasingly used to invest in manufactured home communities. Even private investors are rolling large into Oregon parks - i.e., the reported buyer of Songbrook. This demand is significant in driving prices up, and pushing returns down.

The value of smaller parks is increasing as well. Currently in Oregon, there are about 15 smaller (less than 100 spaces) parks listed for sale, with Cap Rates that are advertised between 6-12%. This wide range indicates the diverse nature of smaller parks, which are often very different from each other.

Price Per Space is another interesting indicator when looking at property values, but there is such huge discrepancy when comparing parks - especially smaller ones - that Price Per Space is generally a secondary calculation. Currently, there is an RV park on the market at $6,000 per space, compared with nearly $100,000 per space in the Songbrook sale.

Both of these are extreme examples; a more 'typical' Price Per Space range is $30-60k, and is influenced by many factors singular to that property.

Pricing your park correctly is critical to selling promptly. There are several parks on the market that have been available for multiple years - clearly priced incorrectly for their market.

Consult an experienced park broker. It's our job to know the many parks and markets that exist, and to personally know many of the sellers, buyers, brokers, lenders, vendors, and other industry people that collectively affect the value of Oregon parks. There is a ton of activity right now, and not all of it is apparent to investors without deep connections in the mobile home park industry. There are a lot of interesting and very relevant histories out there that inform our opinion and strategy when selling parks!

Keep an eye out for my next article: "Buying and Selling MH Parks in a Hot Market".

Ty Downing is a licensed real estate broker at Western Equities, and a mobile home park investor. Ty and principal broker Randy Smith own a combined total of nearly 400 spaces in 8 parks, and specialize in mobile home park sales across the western United States. Contact Ty at 503-653-3887.

Ty Downing
Associate Broker

W
Western Equities

Multifamily and Mobile Home Park Investing
3215 SE Raymond St.
Portland, OR 97202

Tel: 503-242-0033
Fax: 503-281-4054
Cell: 503-653-3887

tydowning@westernequities.com

MHCO Note: At the time of this printing, the Federal Trade Commission still has the effective date for enforcement of the Red Flags Rule as December 31, 2010. Exemptions for specific industries have been granted as late as the first week of December 2010. MHCO and MHI are conducting research on this topic and will be providing additional information as it becomes available. The Federal Trade Commission link is http://www.ftc.gov/bcp/edu/microsites/redflagsrule/index.shtml and contains a lot of information that should be of interest to community owners and manufactured home community retailers. If you are subject to the new rule there is a template developed by the FTC for businesses at low risk for identity theft at this site. While we are still looking into this and monitoring developments in the Congress, it is likely that if a community owner is not billing for utilities, is not providing loans for residents purchasing homes, and is not acting as a retailer selling homes, they are not probably covered by the Red Flags Rule.

The "Red Flags" Rule: What You Need to Know

As of June 1, 2010 the Federal Trade Commission has begun enforcement of the 'Red Flags' rule which mandates creditors and financial institutions to implement identity theft prevention programs. It's important to spend some time discussing the rule, including what it is and what it means for you

The "Red Flags" Rule - In Plain English

The full title is this: "Identity Theft Red Flags and Address Discrepancies under the Fair and Accurate Credit Transactions Act of 2003" (FACT). It amends the Fair Credit Reporting Act (FCRA). The rule was written specifically for companies making loans, such as banks and commercial lending institutions, but a portion of it extends to rental property owners and managers since both rely on consumer reports (e.g. credit) that (1) ask for sensitive information, such as social security numbers, and (2) could turn up address discrepancies. The philosophy behind this rule is simple: sensitive information must be kept secure to prevent identity theft, and a discrepancy in address could indicate fraud.

The rule requires that "reasonable" policies be in place to prevent identity theft and to verify a person's identity when an address discrepancy is reported. In the case of address discrepancy, if the property manager can't work out the discrepancy, the rule says he/she is not to rent to this individual.

What the Red Flags Rule Means for Rental Owners & Property Managers

While the rule has caused some confusion, compliance is straightforward. More than likely, you're probably already in compliance since the only thing that rental owners or property managers have to show is that they have a "reasonable" process in place for preventing identity theft and for checking IDs, verifying IDs, and following up/asking about any discrepancies.

For example, how do you destroy electronic and paper records that contain sensitive information? Or how about this: if someone gives one address on his or her rental application, but the license lists another address, what's your policy for handling this situation? As long as you have reasonable policies in place, you're in compliance.

Do I need to create a special report if I suspect fraud?

The other commonly asked question about the Red Flags rule (beyond "how do I comply") is this: do we need to report suspected fraud? The answer - for better or worse - is no. If you believe someone is trying to perpetrate a fraud, there's no requirement beyond not renting to this individual.

Still Unsure About the Red Flags Rule? Contact Your Screening Partner

Laws, rules, and amendments result in legitimate questions and concerns, so we understand people's trepidation regarding the Red Flags rule. While it's true that you're likely already in compliance, it can't hurt to contact your screening partner and ask to review with them your policies and systems.

For full details, visit the FTC website at http://www.ftc.gov/redflagsrule

The information in this article should not be construed as legal advice. Always consult an attorney for questions regarding legal matters and compliance.

ScreeningWorks is a service of RentGrow, Inc. the resident screening experts (www.ScreeningWorks.com).

For more information please contact info@screeningworks.com or 888-401-7999.

Look for more information on this issue in future issues of MHCO's "Community Update". 

Answer: There is no specific law regarding this issue. However, you clearly understand the ramifications i.e. if a service or amenity is withdrawn, the inference usually is that the landlord has received some financial benefit. In this case, the "benefit" is that the landlord is no longer responsible for maintenance, and the resident is. My position generally is that this type of arrangement should net out to zero in cost/benefit to both sides. That is, here, if the cost of maintenance is shifted from the landlord to the resident, then there must be some offsetting benefit to the resident. If you believe you can allocate the estimated cost that has been shifted to the resident, e.g. $5.00 per month [I am using the figure as an example - I have no idea what the actual figure might be. - PCQ] then there would be a commensurate $5.00/month reduction in rent. The more difficult issue is whether you may "require" this. I doubt it. The residents never signed on to ownership of a park amenity when they commenced their lease or rental. In fact, a cynic would say that you're only doing this because of the condition or age of the carports. I'm not, but I'm suspecting this as a response from some if you attempted to "require" that all residents assume ownership of them. There is also the issue of the condition of the carports. Are you going to warrant to each resident that they are in good condition? Or, is this going to be an AS-IS sale? If the latter you most certainly cannot require they agree to take over ownership of carports when you decline to stand behind their quality. If the idea is that once bought, a resident could "upgrade" them, you need to think the idea all the way through. For example, any such construction must first be approved by Management. Are you going to require that all work must be performed by bonded contractors who have liability insurance and are licensed with the Construction Contractors Board? You will need to post a Notice of Nonresponsibility for construction liens. [I have seen liens imposed on park owned property for a resident's construction project that was (foolishly) approved by Management.] Are you going to permit residents to do the construction work themselves? If so, you must make clear that the work must be performed in accordance with all applicable laws and ordinances, especially the applicable building codes. Who is going to then monitor construction to make sure what was approved is what was built? Is the manager qualified to do this, and does he/she have time? Are you going to require the residents undertaking construction [either themselves or through a contractor] first sign an agreement to assume all liability and release the park and Management from damages? If a third party does the work, besides licensing, you have to make sure they have workers comp insurance (i.e. SAIF). You cannot assume all contractors have this insurance. The smaller the contractor, e.g. solos, the greater the chance they may have neglected to obtain workers comp. If there were an accident resulting in personal injuries, e.g. falling off the roof of the new garage, without SAIF, the injured worker could look to you. Lastly, what are you going to do upon sale of the home? I assume the resident will be selling title to the garage. Since the garage is affixed to the land, would assume a regular "deed" be given, as opposed to a bill of sale [as is common for personal property, such as a manufactured home]. So how is this going to work? Certainly, you don't want residents delivering deeds to the garage, since they actually don't own the underlying land. Yet once affixed to the land, the garage becomes a part of the land. You will certainly have to cover this issue if/when you undertake this program. It's possible that you would just give a revocable "license" or "permit" to the resident, allowing the use and construction, but not pure ownership. And be careful of a resident claiming that you owe them for the value of the improvement, since upon resale of the home, you might increase the space rent because of the "enclosed garage." In light of all the issues, it seems that if you decide to plow ahead with this idea, it seems to me that it should be voluntary, with adequate disclosures and releases per above, so that the resident can never say they had no choice in the matter. There is little question in my mind, that if you made this program mandatory, a court of law would not enforce it, no matter how ironclad.