Time Matters What is “Fair Housing?” On Top of Your Investment!

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VOL. 5, No. 2 JULY 2003
P.O. Box 406 • Fredericksburg, PA 17026 • Ph. 717-865-6800 • Fax 717-865-7711
Featuring Information on our Services,
News,Views & Tidbits that help keep you…
On Top of Your Investment!
What is “Fair Housing?”
By Robert L. Cain, Copyright 1999 Cain Publications, Inc., used by permission
Fair Housing means that rental history, character and ability to pay are important when you rent
your property. Race, color, national origin, religion, sex, familial status, handicap are of no consequence whatsoever.
The reason the “Fair Housing Act” was made into law was that too many landlords gave the impression, and sometimes actually believed, that the color of an applicant’s skin, his religion or national
origin was more important than if he would be a good tenant or not–whether he would pay the rent,
take care of the property and be a good neighbor.
One sure-fire way to avoid even the appearance of impropriety and illegal discrimination is to treat
every person who shows an interest in your rental property, and who rents from you, the way he or
she would like to be treated.
An important distinction falls between treating people the way they would like to be treated and
treating them the way you would like to be treated. Slight cultural differences result in feelings of distrust and/or skepticism when you say or do something in a way that causes offense in your applicant’s
or tenant’s culture.
For example, using a nickname rather than the name they want to be called by may be considered
bad form. So, if a prospective tenant says his name is “Jonathan,” call him Jonathan, not “Jon.” It is a
major cultural faux pas in the African-American community (and is rude no matter what the culture)
to decide someone has a nickname that he or she doesn’t use and doesn’t want to be called. Rudeness
and tactlessness may be interpreted as your having a bias against a particular race or culture.
If you aren’t sure or simply don’t know how an applicant would like to be treated, then your best
bet is to treat him or her the way you would like to be treated.
If you can’t do either of those, at least treat everyone the same way.
No matter how you treat your prospective and current tenants, though, always rental policies and
standards and house rules for your rental properties that have nothing whatsoever to do with race or
color, national origin, religion, sex, familial status, or handicap. These are standards which are objective and relate to how well an individual will do as a tenant and how they are supposed to act to be
good tenants and neighbors. Then apply them equally to everyone.
Another method of avoiding even the hint of illegal discrimination is to think of every potential
tenant as a potential customer and every tenant as a customer. Your current tenants are paying you
thousands of dollars a year, paying your mortgage, property taxes and insurance. And potential tenants are eager to do the same thing. Thinking of it that way could well give an entirely different slant
on your relationship with your tenant and potential tenants.
Fair housing is the right thing to do. It doesn’t require treating any one class “specially,” except in a
few isolated situations, just that you treat everyone equally and judge each person on the basis of his
or her character.
“Robert Cain is a nationally-recognized speaker and writer on property management and real estate issues. For a free
sample copy of the Rental Proprty Reporter call 800-654-5456 or visit their web site at www.rentalprop.com”
Copyright © 2003. All rights reserved, including the right to reproduce this newsletter or portions thereof in any form by any means, electronic or mechanical, including photocopying, recording, or by an
information storage or retrieval system without written permission from A. Hunter Property Management, Inc.
PA Legislative Offices
and Associations
Pennsylvania Attorney General
717-787-3391
Pennsylvania Department of Transportation
In PA - 800-932-4600
Outside of PA - 717-391-6190
Harrisburg Area - 717-787-3130
Pennsylvania Department of Banking
717-787-3717 • FAX: 717-787-8773
Pennsylvania Department of Labor and Industry
Information Number - 717-783-5003
File Research - 717-787-4382
Pennsylvania Department of Revenue
717-783-5478 • FAX: 717-772-5046
Pennsylvania Department of Vehicle Licensing
717-787-2304
Oversize Loads and Special Permits
Dan Smyser - 717-787-7445
Walter Knerr - 717-736-6727
PennDot Webpage: www.dot.state.pa.us
PA Turnpike Commission Webpage:
www.paturnpike.com
Public Utility Commission
Motor Carrier Enforcement
717-787-7598
CALENDAR
PMHA Board of Directors Meeting – 2003
Mon., Oct. 13 or Tues., Oct. 14 – Cooperstown, NY
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industry, please submit your copy to A. Hunter Property
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Chrissy Responds
Answers to commonly asked questions about
community management.
by Chrissy Jackson, ACM, PHC
Neighbors who don’t get along are nothing new to the multi-family
housing market, but they are always a challenge when they are in your
community. What to do?
Typically, there is one resident, let’s call them the Hatfields, who is
constantly calling your office to complain about their neighbor, the
McCoys. Now, the McCoys never have any problems with any other
neighbors, but no matter what they do, the Hatfields are upset.
And it works both ways! Each time the McCoys pay rent, they are
complaining about the Hatfields. When you took over the community, one of the things you did was begin to enforce the Guidelines. That
means you are now asking them (as well as all the other residents) to
put their complaints in writing.
Suddenly, you are receiving epic
novels from each of these families.
The details are amazing. The story is
never-ending. Each day there is some
new development, and at times one
or the other of them even feel compelled to come to your home with
their “tidings of joy.”
What to do? You simply cannot
live the rest of your life acting as referee for the Hatfields and the
McCoys! Life must go on!
Now, there is a solution. Review
your Guidelines. Make sure that document gives you the right to require
all complaints in writing. Then, use a specific form for the purpose.
The form will require the resident who is complaining to do three
specific things. First, they must outline the details of the complaint.
Secondly, they must identify the Guideline that is being violated. And
thirdly, they must propose a solution.
Do not accept an incomplete complaint. All three items must be
completed in order for you to have a legitimate complaint.
Do not accept a verbal complaint. All complaints must be in writing. Stand firm and insist that all residents follow the Guideline. No
exceptions.
That does not mean that you would ignore a complaint if it is truly
an emergency. Nor does it mean you won’t investigate the situation if
you only have a verbal report.
It does, however, mean that you are going to tell each resident that
they must put their complaint in writing, in accordance with the
terms of the Guidelines. It also means that you will have both forms
and extra copies of the Guidelines readily available for whomever visits the office. And, you must smile.
You are helping them. By requiring a written complaint, you will
have the correct information. The dates will not be confused or forgotten. The names of the people involved, and the details of the situation will be crystal clear, and not in any way befuddled.
Does it work? You bet! This tried and true method has done wonders in the all age community where it was first used!
The key is persistence in your attitude. You are not unreasonable,
nor are you being overbearing, you are simply trying to do your job.
And you need the facts.
“Feeling Swamped?”
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24 / 7 WE’LL HANDLE YOUR…
tenant communications • maintenance • rent collection • payment of property bills • snow removal
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Specializing in Manufactured Home Communities
Full Service Professional Property Management
which we can tailor to suit your needs.
Over 12 Years Experience
Member PMHA, Institute of Property
Management, SOHO, Lebanon Valley
Chamber of Commerce,
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P.O. Box 406
Fredericksburg, PA
17026
(717) 865-6800
Property Management from A to Z
By Chrissy Jackson, ACM, PHC
When someone asks about what it
takes to be a “good” property manager,
our minds often envision a person with
skin as tough as alligator hide; someone
as fair and impattial as a judge; one
whose patience is unlimited; and whose
wisdom knows no bounds.
Those, however, are personal attributes. And, although they are certainly
noteworthy, and they surely contribute
to the overall successful picture of a
“good” property manager, they don’t cut
to the heart of the question.
A “good” property manager must possess a large number of skills and talents,
as well as being created from the fiber
described above. This article looks at 26
different skills and talents – everything
from A to Z – that should be possessed
by a “good” property manager
Using these skills regularly and developing these talents to the best of your
ability is what makes the difference
between a property manager and a
“good” property manager. Having these
skills and talents, and not using them,
or using them only once in a while does
not make you a “good” anything.
Customer service is often touted as
the position that will be most in
demand as we continue into the twentieth century. A “good” property manager
is customer service personified. Each
person who lives in your community,
looks at living in your community, or
works in your community is your customer. If you, as property manager,
develop these talents and use these
skills as outlined below, customer service will be second nature to you and
you will indeed have become a “good”
property manager.
This list, however, is not all-inclusive.
There is already a second list of A to Z
almost ready to print. How many others
can you think of that should be included? Send your comments by email to
chrissy@gte.net for inclusion in the
next list.
Activities – Even without a clubhouse,
you can arrange activities for your residents. Coordinate volunteers to help
organize events and publicize them. Be
creative; encourage new ideas from residents. Check your library for books
detailing unusual ideas for get-togethers.
Encourage the formation of a resident
social organization to keep the residents
of your community active and create
that “neighborhood” feeling.
Balance – It is up to you to balance
your day. Allow time for resident interaction in activities and discussion. Keep
an eye on expenses and remember the
importance of balancing the budget.
Balance the needs of your employees
and residents with the needs of your
employer.
Curb Appeal – “If you don’t have
curb appeal, you aren’t open for business,” as the saying goes. Make sure
your community is clean, curbing and
sidewalks are swept, flower beds weeded, and the entrance attractive.
Dress – Dress appropriately. If you
work in the office, dress professionally in
good looking clothing. If you work outside in the community, wear uniforms
for easy identification by the residents
when they see you. Employees – A company’s biggest asset is its employees.
How you treat your employees is how
they will treat your customer (your resident). Show your residents the trickledown effect of a positive attitude. Stress
taking care of your employees so they
will take care of your customer. Praise
liberally, often, and sincerely. Discipline
when necessary in private and follow up
in writing.
Follow Through – In each and every
thing you and your staff do, emphasize
the importance of follow-through.
Whether you are notifying a resident of
a covenant violation or a delinquent
rent situation, follow through on the
appointed date. All court judgments
and monetary awards require follow
through for collection. Another big area
that needs constant follow through is
the maintenance requests you receive
from your residents. And don’t forget to
always follow through on preventive
maintenance on your vehicles, equipment, and rental homes.
Green – Green is usually synonymous
with money, and so it is here. Keep the
green in your community! Improve your
cash flow; reduce the delinquencies;
and increase the amount of green on
the bottom line.
A-Z
Honesty – A personality characteristic that every company values and no
manager should be without – in themselves as well as in their employees.
Even in the worst situation, honesty is
better than the next best alternative.
Initiative – Be at the forefront of
those who get things done; not those
who wonder how it happened; or even
worse, those who don’t even realize that
something happened! Develop self-confidence in your employees, and encourage them to take responsibility for work
assigned to them, and initiative to realize what else needs their attention.
Judgment – Exercise good judgment
in all things; be fair and consistent in
relationships with employees and residents. Look at all sides of a situation
before making a decision. Listen to
input from everyone who will be affected by your ruling. Make prudent decisions for the good of the company in a
reasonable amount of time.
Knowledge – Know the industry;
your job functions and requirements;
where to go to get help; and who to call
in case of emergency. Know the economic indicators, market conditions,
and demographics of your area. Know
the property managers in your surrounding area as well as the retailers. Know
the laws of your state and county which
regulate landlord/tenant situations.
Listen – Listening is the most important part of communication and the one
least often used. Wise men have said
you can learn much more by listening
than by talking. Residents need to know
you have time to listen to their concerns. Employees need to know they
can talk to you when they have information to share, or a question they feel
is important.
Marketing – Marketing starts when
you walk out of your home in the morn-
(continued on page 7)
PROFESSIONAL
PROPERTY MANAGEMENT
Over 13 Years Experience in the Industry
WE SPECIALIZE IN MANUFACTURED HOME COMMUNITIES
A. Hunter Property Management provides the highest standard of professional management services thoroughly and
efficiently through the competence and technical knowledge of their staff. Their primary objective is to maximize return
on your investment using years of experience and expertise, and a sophisticated approach to property management.
Objectives
Services
• Provide a service to owners which will free them of the
work load involved with running an investment property
• Maintain a clean, smooth operating, profitable property
• Ensure a pleasant community residents will appreciate
• Coordinate Property Maintenance Including:
utilities, lawn care, snow removal, etc.
• Improvement Projects
• Rent collection, payment of property bills
• Monthly Income and Expense Reports
• Owner/Resident Communications
• Routine “On-Site” Inspections
• Rule Violation/Enforcement
• Represent Owners at Related Hearings
• Emergency Service Hotline 24 hrs/day, 7 days/wk
• Maintain Occupancy
• Keep Owners Informed of Changing Legislation
with Proactive Involvement
Advantages for the Owner
• Experienced and Dependable Service
• Well Maintained Property
• Satisfied Residents
• Informed Owners
• Freedom of Owning
• Employees have PHC Designation
For More Information Contact…
A. Hunter Property Management
P.O. Box 406, Fredericksburg, PA 17026 • (717) 865-6800
eMail: info@ahunter.com • Website: www.ahunter.com
Member PMHA, Institute of Property Management, SOHO, Lebanon Valley Chamber of Commerce,
Manufactured Housing Institute, Small Business Association
Rental Policies and Standards
t’s amazing. Too often landlords
have no concrete idea of whom
they will accept as a tenant. The
result is that they accept just anybody,
or they rent on “gut instinct.” Both
methods are fraught with danger. A
third method is taking your property
off the rental market for a month or
two, because you didn’t get any decent
applicants and are afraid to either rent
to any of them or turn someone down
for fear of a Fair Housing complaint.
Then you lose one or two months’
rent, and needlessly.
We know what happens when you
rent to the first person who shows up
with cash. That’s the last cash you’ll
see from him. And, you can end up
spending a lot of your own cash to fix
the damage that he or she did, plus
paying the mortgage out of your own
pocket because of the rent you never
received.
The gut-instinct method has
worked for some landlords for many
years, without them getting burned.
They have been lucky. It is perilous
two ways. The first is related to the
“rent-to-just-anybody system” of landlording: you pay because they don’t.
The second is that you reject a perfectly acceptable, possibly even sterling, applicant because he or you had
a bad day or didn’t quite hit it off. A
corollary result is the Fair Housing
complaint because you rejected a
member of a protected class because
you had a “bad feeling” about him or
her, but accepted another applicant
I
who was not a member of a protected
class.
Rental standards avoid all three of
the problems I’ve just described. In
fact, having printed out rental standards does three things for you:
One, it self-screens applicants.
Properly done, you will eliminate a
large percentage of the unqualified
applicants from even asking to rent
from you. When they ask for a rental
application, you give them one and
with it a copy of the rental standards.
Many times when they read them, you
never hear from that applicant again.
Two, it gives you an idea of the
minimum standards you will accept
for a tenant. No more guessing
and using how you feel to decide.
Three, properly drawn and managed, rental standards protect you
against Fair Housing complaints far
more than if you do not have standards.
1) A satisfactory current landlord reference of at least three months in
duration.
2) A satisfactory past landlord reference of at least six months’ duration in the past two years.
3) A referral from a social service
agency which has a partnership
agreement with the property
manager.
4) If no or insufficient landlord references, then satisfactory personal
references (such as teachers,
coaches or ministers), and/or participation in a housing readiness
program may be acceptable.
from the tape series, “Avoiding the
Tenant from Hell,” available from Cain
Publications.
Are You Liable?
Reasonableness
Standards are kind of like Goldilocks
when she tasted the porridge, they can
be too strict, too easy or just right.
Too strict standards can mean you
end up making yourself a lot of extra
work and losing a good tenant
because your standards didn’t fit the
property. Not every rental property is
going to attract applicants who have
ten years of increasing responsibility at
one company and a previous tenancy
lasting seven years.
What kind of rental standards are
reasonable? You have to choose. But
standards you include are things that
show that the applicant will be a good
tenant, not just that they meet some
standard. If you have some properties
that attract low-income people or
first-time renters, probably the kind of
housing that has the greatest number
of bad tenants, one way to accomplish
that is by using standards that leave
options for qualifying.
For example, you might use the following reference criteria:
At least one of the following types
of references is required of applicants:
You own a manufactured housing
community. In fact you own several communities. At one community a family is denied residency by the community manager for
questionable reasons. The family
sues declaring Fair Housing discrimination. How far can the liability be extended? To the community manager? Definitely. To
the corporation? Unquestionably.
To you as the owner? Not personally. The United States Supreme
Court has recently ruled that
although an owner does have the
right to control corporate employees the owner or the officers of
the corporation can not be held
liable for their actions.
Property Management from A to Z (continued from page 4)
ing, and ends when you go to bed at
night. It is a never-ending, constant situation which needs your attention.
Even when a community is full, you
must continue to market your community reputation as a desirable neighborhood.
Newsletters – Newsletters are one of
the best and easiest ways to communicate with your residents. Make them
upbeat, positive, and full of good ideas.
Use your residents as sources of information for columns; recognize new residents, birthdays, anniversaries, achievements, and awards. Incorporate graphics
and clip art to get attention; use colored
paper. Introduce contests and announce
community activities. Most importantly,
be regular. If done properly, residents
will look forward to contributing articles
and receiving their newsletters!
Occupancy – Filling the community
and keeping it full gives you the budget
you need for improvements. Occupancy
increases not only by bringing in new
residents, but by keeping the ones you
already have. Be creative in advertising,
marketing, and filling your community
with more homes to eliminate vacant
sites. Be just as creative in covenant
enforcement and developing a “neighborhood” feeling to reduce the number
of residents who leave.
Professional – Become an active proponent of the Decade of Manufactured
Housing by increasing the level of professionalism within your office and your
community through training, proper terminology use, and performance. Each
piece of paper that leaves your office
should have the professional, clean look
which represents your community. In
dealings with residents maintain your
professional decorum no matter what
the situation. Insist that your employees
are professional in their performance
and provide training when needed.
Reward and acknowledge increases in
the level of professionalism within your
staff.
Quality – Ouality goes hand in hand
with professionalism. Impress your staff
and your customers with the quality of
your work on a regular basis – then
insist on the same from your employees.
Provide a quality community for your
residents. Screen prospective residents
to maintain the quality standards you
set for your community. Every request
from a resident requires a quality
response – whether it is maintenance or
other communication.
Realistic – Encourage realistic attitudes toward residents who have shortterm requests or problems. Be flexible
whenever possible within the corporate
guidelines to help resolve a problem, not
create a bigger one. When issuing
covenant violation notices, be realistic
in the time frames you give for corrections and/or repairs. Delinquencies are a
problem, but not an impossible one, if
you are realistic about payment plans.
Being realistic means to honestly look at
a situation, see if there is a workable
solution, then work toward it. Being
firm in following up on broken promises
does not mean you are being unrealistic.
Sales – Sales is not only selling
homes. Sales includes selling yourself
and your community everyday to everyone you meet. That includes not only
employees and residents, but also vendors and prospective residents. Sell
yourself; your commitment to the betterment of the community and your
belief in the value of the residents. Sell
your community; the location, amenities, and the sincere dedication of your
staff.
Think – Don’t allow yourself to get
into the habit of just coasting by doing
the minimum to survive. Constantly be
thinking of ways to improve your community, the communication with the
residents, and your activities. Think
about the appearance of your community and what could be done to improve it.
Think about programs and training that
would benefit you and your staff. Think
about the impression you make and how
that reflects on your community.
Upgrades – Constantly upgrading and
improving your community should be
one of your priorities. Even in newly
built communities, it is possible to
upgrade in appearance – just by filling
vacant homesites. Older communities
may be a challenge, but you can do it.
Get creative, enforce covenants, show
your residents that “upgrade” means
“increased value” for them and their
home. Bring the value of your community up by upgrading the assets within.
Verify – Each time you are told of an
incident, and asked to take some sort of
action, verify your information. Whether
it comes from a resident or an employee, verify before you accuse. Purchasing
also requires you to verify costs against
allocated budget amounts, verify invoices against purchase orders, and verify
payment to vendors. When planning
the budget for the next year, verify projected costs for fixed expenses and capital improvements.
Win-Win – Create a win-win situation every time for both residents and
employees. Whenever there is a controversy or difference of opinion look for a
positive solution that pleases everyone.
Winning alone creates resentment and
hard feelings. Winning together creates
a team. When you and your residents
win together, you have created community spirit.
Xerography – Use your photocopier
as an example of one of the lowcost services you can provide to your residents.
There are several others: use of the fax,
use of a conference room, free lawn care
when your residents are on vacation,
daily phone calls to check on the elderly, rent check pick-up for the disabled or
homebound, etc.
Yes – Learn to answer every question
with a “yes” rather than a “no” and to
form the answers positively. Even if the
bottom line must be a negative, start
your answer by saying, “Yes, I can see
where that would be important to
you...” Using a negative right away causes you to lose the resident who is trying
to communicate a need to you. Using a
positive word or phrase shows that you
have heard, you have understood their
need, and that you are trying to work
out a solution.
Zest – Approach each day, each situation, each person with an attitude full
of joy and zest. Be positive and cheerful.
Look for reasons to enjoy your community, your residents, and your staff. Fill
each person you meet with the zest of
living.
Contact the Author:
E-Mail chrissy@gte.net
Visit the Authors Web Site:
http://chrissy-jackson.com
Chrissy Jackson is a Tampa Regional Manager and Dean
of Hometown University for Hometown America. As
Dean of Hometown University, Jackson will organize educational curricula for Hometown America employees. She
may be reached at 813/982-9617 or chrissy@gte.net
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While a great deal of care has been taken to provide accurate and current information, the ideas, suggestions, general principals and conclusions presented in this
letter are subject to local, state and federal laws and regulations, court cases and
any revisions of same. The reader is thus urged to consult legal counsel regarding
any points of law – this publication should not be used as a substitute for competent legal advice.
Member PMHA, Institute of Property Management, SOHO, Lebanon Valley Chamber of Commerce,
Manufactured Housing Institute, Small Business Association