The War Rages On

Empire is currently enjoying a less than 1% vacancy rate, and this is good and bad for Oregon landlords.
It is good because the demand is giving many landlords the opportunity to raise rents in order to keep up with maintenance and begin to be profitable. The competition is so fierce that at many showings we will see 10 parties or more attend. Oregon's only real problem is a lack of housing inventory, and developers are slow to react since the diligence in developing new housing can take anywhere from several months to years.
The bad is that the Oregon Legislature, Governor, and local governments have declared war on "evil" landlords for the service we provide. Here are some of the bills coming along. HB 2004 being most likely to go to the House floor.

• Rent Control - Several bills are being looked at in committee to limit rent increases to no more than 5% per year. 

• End No Cause Notices - There are some exceptions, but even with the exceptions landlords will be required to give a 90 day notice and require landlords to pay for relocation costs of up to 3 months rental value. This is going to destroy the already turbulent market.

• Repeal Prohibition of Rent control for Oregon cities.

• And the worst was already passed in Portland. There, landlords are now required to pay tenants for relocation costs ranging from $2900 to $4500 and landlords are required to give tenants a 90 day notice.

Empire's position is that the free market is a miracle of nearly infinite moving parts and that the government could not possibly help the relationship between landlords and tenants. In the end, Oregon tenants will pay for all of this in the form of lower quality rental units, even more scarcity, and another generation of landlords who see their tenants as the enemy instead of valued paying customers.
Make sure you call and email your legislature and let them know where you stand on the coming legislation.
James (Ed) Waggoner
Empire Property Management

Farewell

Farewell

As some of you already know Tim Waggoner has decided to take a job in the construction industry.Congratulations! While we will miss you and have fond memories of working with you, we wish you well and hope you will be successful. Your dedication and fun loving (pictured- not sure who the ninjas are) attitude will be missed by everyone here at Empire but especially by me (his dad). The door will always be open for Tim at Empire.  Godspeed in your new adventure!

Eugene Rental Housing Code

Eugene Rental Housing Code

The City of Eugene enacted the Rental Housing Code in 2005. Ostensibly, the Code was created to protect tenants by creating minimum standards for rental properties and enforcing those standards through a complaint driven process. On the surface, who could argue with a program that will force "bad" landlords into doing there duty to provide quality housing, but the causal relationship between government intervention and the rise in homelessness and affordable housing cannot be ignored. 

The creation of "minimum standards" cannot be decided by a committee, but only truly decided by the tenant. Each tenant must way the value of the product and the commitment of the landlord to continue to provide that product. We all make this decision when making purchases. These "minimum standards" limit the choices the tenants have in the pool of available rentals by raising the "quality" and therefore price. Many tenants financial situation dictates that they can afford only the most basic housing. But since the housing code will eliminate a lot of this affordable housing the tenants is left with housing they cannot afford. This leaves them with charities from non-profits, government housing programs, and when that fails- homelessness.

The Housing Code itself will not directly effect any Empire customers, as we are educated enough to know that maintaining "minimum standards" is not a path to financial security. However, the Housing Code has far reaching effects, since the cost of housing will increase due to the pressure put on housing from lack of supply and regulation such as the Eugene Housing Code. Inevitably, the talk will turn to rent control. The effect of which will be to create a further lack in housing and exacerbating the lack of affordable housing.

The upcoming Housing Board meeting is your opportunity to be heard. I urge available ROA members to submit written testimony to the Eugene Housing Code Advisory board or the attend the board meeting on Tuesday the 17th at 7:30pm at Harris Hall located at  125 E. 8th Avenue, Eugene. Please sign up to give oral testimony.

This article was originally written for the Rental Owners Association of Lane County and adapted for EPM.

Now You're Cookin'

Now You’re Cookin'
by Ed Waggoner, ROA Board Member and Owner of Empire Property Management, LLC

In the whole realm of managing your rental property, not much thought is given to your cooking appliances until the one you have starts giving you trouble. Since it is generally the landlord’s responsibility to provide cooking appliances, be a good landlord and take care the situation right away.

First, we need to think about whether to repair or replace. This is a judgment call on your part, and before you decide, you need to figure in a few items:

·                     How old is the unit? A range can last for 20 years or even more, as we have units that work just fine at 30+ years old. But when they reach 15+ years the advantage of replacing starts to win.

·                     Is the range a self-clean?  This is huge. You, or a cleaning company, can spend hours cleaning an oven. This cuts into your available deposit, and since judges do not clean ovens, your pleas for understanding will not be heard in court.

·                     Is it ugly? Maybe extra money now to upgrade your rental is in order. Not too much, just clean and new is often enough to make your property more rental-able.

·                     How much is the repair? We all know the adage that when the cost of repair is over 50%  of the cost to replace, it’s better to replace. But first, make sure that the cost to replace is the whole cost, not just the cost of the appliance. Meaning, the appliance,
          delivery, installation and haul away. Look at the condition of the unit. Is it almost new and the breakage is just a fluke? Maybe a repair is in order. There are many good and
          professional repair companies in town - and you can always refer to your ROA Bulletin Business Directory.

·                     Can you fix it yourself?  There are many handy landlords, and a lot of the repairs are pretty easy. New range and oven burners are the easiest. (Buy new stove top pans while you’re at it). All in all, a stove is pretty simple, but if it’s electronic, you may want to leave it to the professionals. For how-to videos try youtube.com and repairclinic.com.

After all this, you may decide to replace. So…what do I buy? First, you want cheap, but not too cheap. Then, the unit has to be self cleaning. Next, if you have an older drop-in unit you may want to consider converting to a free-standing range, since most drop-ins are being phased out of production leaving supply low and prices high. I still like the regular coil burners for my rentals (even though I have a smooth top in my house). They are cheaper to buy and cheaper to fix. All major brands will suit you: Whirlpool, GE, Amana, LG and Frigidaire have all been installed with a slight advantage to Whirlpool in repairs costs. The unit does not have to be new. I have installed many good and functional appliances I’ve purchased from Craigslist or St. Vincent de Paul's. If you’re going new, check around at all the major box stores and appliance outlets for prices. There can be a 25% difference in prices from store to store.

Happy Landlording!

This article was originally written for the Rental Owners Association of Lane County and adapted for EPM.

Customer Retention

Customer Retention

The rental market is hot and everyone knows it. So why is Empire concerned about retention? Happy customers (tenants) pay the rent and take care of the property, while disgruntled customers take their business somewhere else. A lot of landlords and property managers act irritated with their customers when they contact them with a maintenance request. These landlords are playing the short game, and it does not take long before the customers get the idea that the landlord does not care. At Empire, we work hard to create an atmosphere that tells our customers we care about their business and want to keep it. This does mean additional cost along the way, but over the long run our owners enjoy higher returns, lower vacancy rates, properties that are ready to sell when the time comes, and the satisfaction of knowing you helped provide a clean and safe home. There really is not another way.

Pets or No Pets

Pets or No Pets

The question of pets is always of serious concern to our owners. Many have seen the destruction pets can do, and the initial reaction is to just say no. However, it is not always that easy of a decision as economics and our customer based weigh heavily on our industry. Economics since we have to have rent in order to pay the bills and a solid 80% of our customer base has or wants to own a pet. Not to worry, if you decide (or have decided) to allow pets EPM has you covered.

1. First, our tenants are the best in town. Seriously, we almost never have tenant related issues and when we do we deal with the situation promptly. 
2. Second, we charge additional deposits to cover any potential damage. Deposits start at $300 and at your discretion can go straight up. These deposits have been instrumental in making sure any damage can be covered.
3. Third, we charge additional rent. There is no doubt that is most cases pets add wear and tear to the property. To compensate the owner in most cases we charge pet rent of $20 per pet per month. 
4. Fourth, we screen for the appropriate pet for the property and the owners comfort level. In order of damage cats are number #1, then large dogs, and last dogs under 25#'s. If you are uncomfortable with accepting pets then maybe go with dogs only under 25#'s. And always there are no dangerous breeds allowed. 
5. Next, we have to consider the proliferation of assistance animals that are making there way into the market. These are not pets but are best looked at as a "wheel chair". The industry is fraught with pit falls and abuses in this area. Best leave this to the experts, and please quit voting for politician that pass this legislation. This issue (and others) has driven may landlords out of the industry causing the housing shortage we have now.
6. Lastly, we have to consider that a few tenants will just bring a pet onto the property anyway. This is a pet without being screened by EPM and without any additional deposits.

Overall, rental properties that accept pets enjoys shorter vacancies, longer tenancies, less turn over, and higher returns. We recommend accepting pets for most, but not all properties. Let us know if you have any questions about your pet policy.

Many happy returns,

James (Ed) Waggoner

Empire Property Management LLC

Non-Compliance Fees

Non-Compliance Fees

Recent law changes in Oregon have allowed landlords to lay even more fees onto tenants for poor behavior. There are fees for leaving pet waste, smoking, failure to clean up garbage, parking violations, late fees for utilities, for having a pet capable of doing damage, and the list goes on. This is another case of the legislature meddling in the relationship between the landlord and the tenant, and, for the most part, we at Empire do not believe in most of these fees. Other than a few standard fees such a late fees these new fees only feed the war between landlords and tenants. Our approach is simple. Screen our applicants and select only responsible tenants and then apply our 3 step process if they breach the rental agreement. In 17 years of thoughtful design in property management I believe we have the best solution.

Ed Waggoner - Lead Property Manager at Empire