Apartment Blog

Pick up any magazine within the multi-family housing industry or attend an educational conference, and it is likely you will find something about fair housing.  This issue is important to our industry for many reasons, including the dollar impact of not being in compliance with the fair housing laws. If you are charged with discrimination, the defense costs are high, not to mention perhaps having to pay to either settle the case or satisfy a judgment.  You have protected your business and yourself from the ramifications of a fire, a slip-and-fall, or the myriad of other events that create liability for you as a landlord.  But what about fair housing insurance coverage?  Do you have it?  Do you not have it?  Do you know?  Do you really need it?  Do you care (probably, since you are reading this article)?  Is there really any such thing? 

Yes, there is coverage available. But it is up to you to find it, evaluate it, and make good business decisions regarding your needs. This article won’t give you all the answers, and will most likely raise more questions for you, but it is a good starting point for you to dialogue with your insurance agent or carrier.  So, here goes…

The first step is to see if you have coverage:

1. Keep in mind that your General Liability and Directors & Officers policies will likely not provide you with fair housing protection.  Personal Liability policies may (or may not!) provide coverage, but Professional Liability will often do so.
2. Check the AM Best’s rating (FSR - Financial Strength Rating) for your carrier’s ability to meet its obligations to you as a policyholder.
3. Discuss whether the carrier is “admitted” or “non-admitted/unauthorized” in the state or states in which you have properties and do business.
4. Next, open up a discussion with your agent/carrier about “Discrimination Coverage” or “Tenant Discrimination Liability Insurance.” The term “fair housing insurance” is not generally used in the insurance industry.

Now, let’s say that your agent/carrier assures you that you have the coverage or that you will be able to buy it. You’re all set now, right?  No, not at all.  As a smart business person you need to know what it is that you have bought or will buy.  And what you think you “see” is not necessarily what you might actually “get.”  You need to know:

1. Are you covered for intentional acts of discrimination?
2. Are you covered for punitive damages? There have been fair housing cases with punitive damages in excess of a million dollars, and one non-landlord fair housing case with punitive damages awarded at one hundred million dollars (that’s $100,000,000 and not a typo!).
3. Are you covered for civil penalties, emotional distress, compensatory damages, legal fees and settlements?
4. There are so many people for whose acts you are responsible.  Are you covered for the issues created not just by your regular employees, but also part-time, temporary, and leased employees, as well as volunteers?  What about issues created by residents, or your contractors and vendors?
5. Are you only covered during the leasing/application process?  What about coverage as relates to residents during their tenancy with you?  (In fact, most complaints are filed by current residents for harassment, evictions, different terms and conditions of their leases, and denial of requests for disability accommodation.)
6. Are you covered for groundless or false claims?  Defending these can cost thousands of dollars!
7. Are you only covered for actual lawsuits?  What about formal complaints made to HUD?  What about an informal claim made to you?  Keep in mind that you likely have a responsibility to notify your carrier even when someone just mentions a fair housing issue to you.  What is the time frame for notification?  And what can it cost you for failure or delay in notification…you may invalidate the coverage entirely!
8. Are you covered for prior acts, those which may have occurred before your policy went into effect?
9. Can you choose your own attorney?  The answer is “not always” and this can be to your detriment.  Attorneys who are familiar with fair housing complaints, the various enforcing agencies and investigators, can often get a situation handled quickly and resolve it efficiently because of their expertise.  A carrier’s attorney may not be able to do that and can run up hours of legal fees while trying to learn about this specialized area of the law.
10. Will the carrier pay up front, as you accrue expenses, before the case concludes?  Keep in mind that fair housing cases (and their costs) can, and do, go on for years and years.  Your carrier may give you a “Reservation of Rights Letter” - they’ll pay you now, but if the event turns out to be non-insurable at its conclusion (perhaps for intentional discrimination), then you will be required to give the money back and pay your own judgment to boot!
11. Who controls a possible settlement; you or the carrier?  Most cases are settled, and few actually make it into an administrative or federal district courtroom.
12. Is there a “hammer clause” regarding settlement?  If you refuse to agree to a settlement offer and insist on going to court, but then lose more than you could have settled for, guess who pays the difference?  (Hint- if there is a hammer clause, it won’t be your carrier who pays.)
13. Will a settlement affect your tax credit properties?  If you are found to have discriminated, you bet. If you settle and thus “admit” liability or lose in a lawsuit, you stand a good chance of losing your tax credit status.

A fire can occur at your community, someone can slip and fall.  There could be wind damage, hail damage, a tragic drowning in your pool.  You have likely protected yourself from these possibilities with insurance.   But be sure that you have done what you can to also protect yourself from the wrongful denial of a reasonable modification or accommodation request; sexual harassment or harassment based on protected class status; eviction or differential treatment because of protected class status; saying the wrong thing; treating applicants differently; linguistically profiling on the telephone; having community rules that unreasonably target children; automatically evicting the mentally disabled; not allowing assistance animals in pet-free properties; failing to have accessible housing where required or failing to allow modifications for the disabled.  These are the most common bases for fair housing complaints.

Make smart business decisions.  You may be disinclined to pay the premiums for tenant discrimination insurance yet just a few hours work on a fair housing issue may result in legal fees that are as high as the premium for coverage would have been.  Know what you are buying. Hopefully the ideas shared above will help you evaluate that. And consider this closing message from this trio of authors…complying with fair housing law is the right thing to do and avoiding fair housing complaints in the first place is the best insurance of all. 

REQUIRED LANGUAGE FOR ALL REPRINTING OF THIS ARTICLE:  “Fair Housing Focus” is written by Nadeen Green, Senior Counsel with For Rent Media Solutions^TM, Anne Sadovsky, CSP, CAM, CAPS, RAM and DJ Ryan, Fair Housing Specialist, Kimball, Tirey & St. John, LLP.  The information contained in this article is not to be considered legal advice, and the authors and their companies strongly suggest that you consult with your own counsel as to any fair housing questions or problems you may have.

I had an interesting conversation with Mike Whaling and Lisa Trosien on Twitter last week regarding the benefits for apartment communities going green during this economy.  A question was posed whether renters will actually see the benefit of apartment properties going green and therefore, pay the extra premiums associated with it.  According to the key findings from a Conscious Consumer Report (2009), 51% polled said they are “willing to pay more” for ‘green’ products. Confirming that study, Apartments.com published a survey stating “apartment communities that offer environmentally-friendly amenities are more likely to turn undecided renters into residents. Additionally, more than half of renters surveyed indicated they would take an apartment community’s commitment to environmental issues into consideration.” However, 66% polled in the Conscious Consumer Report said that price is very important in the purchase decision, implying that price can be the deciding factor.

Therefore, management companies that want to go ‘green’ need to consider factors that will help their bottom line in addition to the prospective renter.  You may ask, as Mike did, how can the bottom line in a community with sub-metered utilities be helped? Well, I called the one person I knew would know; that was my father, Scott Bucheister.  He is a salesman at Coastal Insulation and was recently certified by Earth Craft Virginia. He commented that “going green can have a direct impact for property manager’s finances by saving money on energy and maintenance costs.” Curious in what ways? Here are a few he mentioned:
 

Solar Lighting or CFL Bulbs:
The benefits of using solar lighting on an apartment property are abundant. First off, it has low energy costs. It has very little maintenance. And it comes from a renewable resource as it is powered by the sun. Another benefit is that solar lights continue working even if there has been a power outage. Because the energy isn’t coming off of an electrical grid, power outages make no difference. Installing solar lighting for your landscaping needs, wall lights, security lights, etc. around the apartment community will save money. Compact Fluorescent Light (CFL) bulbs will also prove beneficial to properties in common areas such as community centers, unit hallways, management and maintenance offices, etc.

Low Flow Water Devices:
Water and money can be saved by installing low-flow water devices around the apartment community. In community laundry mats, replace old washers with front-loading ENERGY-STAR washers that conserve water. In the community center install faucet aerators on your bathroom taps. Replace old toilets with new low-flow or ultra-low flow toilets or, in the kitchen, replace old dishwashers with ENERGY-STAR dishwashers that conserve water.

Xeriscaping & WeatherTrak Irrigation Systems:
Xeriscaping refers to landscaping and gardening in ways that reduce or eliminate the need for supplemental irrigation.  The specific plants used in xeriscaping depend upon the climate. Some common plants used in Western xeriscaping are agave, cactus, lavender, juniper, sedum and thyme. Advantages of xeriscaping include lower water bills, less time and work needed for maintenance, and there is little or no lawn mowing (saves energy).  Xeriscape plants, along with proper bed design, tends to take full advantage of rainfall and when water restrictions are implemented, xeriscape plants will tend to survive, while more traditional plants may be unable to adapt. “If you think about it, most apartment communities completely redo their landscaping every year with the flower beds, lawns, trees, etc. If they use native plants that are drought resistant they don’t have to replant every year to attract new renters,” said Mr. Bucheister. “In fact, I was so impressed with the idea of xeriscaping that I actually implemented this in my garden at home! It’s extremely convenient as I have little to no maintenance compared to beforehand.”

Besides xeriscaping, there are other irrigation systems that are environmentally friendly. While ordinary irrigation systems overwater your landscape, leaving you with high water bills, WeatherTRAK® smart irrigation systems help you save water, money and time by eliminating overwatering.  Drawing on information delivered wirelessly from 40,000 weather stations, the irrigation is automatically scheduled based on individual landscaping needs and local weather conditions. And catching rainwater using a rain barrel or other rainwater harvesting system can be used to water outdoor plants.

Energy efficient appliances, windows and light bulbs in apartments tend to help out the renters, yes. They can also be a great selling point in convincing a prospective renter to live at a community. And in my opinion should be done by all apartment communities. However, in the current economic situation property managers should also incorporate environmentally friendly ideas that will help their bottom line as well. Do you agree?

The importance of Earth Day has evolved dramatically from its origins in April 1970. This movement began in the U.S., but grew into a world-wide event in 1990. The now global movement was spearheaded by Wisconsin Senator, Gaylord Nelson, who began advocating the importance of preserving the environment in 1962. Interestingly enough, during its infancy, industrial pollution was not a top priority for Earth Day observers. It was to stop the deterioration of the environment. But soon, groups fighting against oil spills, polluting factories and power plants, raw sewage, toxic dumps, pesticides, freeways, the loss of wilderness, and the extinction of wildlife realized they shared common principles.  And that marked the beginning of the modern environmental movement that is today.

There are many ways to participate in improving the environment. We all know the three key elements, reduce, reuse and recycle. I received this interesting email yesterday about buying and recycling appliances. Many companies and vendors are offering new and innovative ways to clean our earth. For example, Best Buy has a wide variety of Energy Star appliances; appliances that meet firm energy efficient guidelines. Some of these appliances include washers, air conditioners, TVs, laptops and more. These types of appliances are located in apartments around the nation and can be modified to help the environment.

Best Buy also offers a recycling program where people can drop off most old electronics. Free removal and recycling are included with the purchase and delivery of a new product. There is even a company within the Hampton Roads area in Virginia that does this: E-cycling Central. But if you’re in the market for an upgrade or if you just want to add some style to your apartment, Best Buy would be a good place to start! Save the world and set apartment trends at the same time!

Source: Wikipedia.com

Former vice president and general manager transitions into his new role as president

NORFOLK, Va.-(December 5, 2008)-For Rent Media Solutions, a leading apartment resource for searching apartments nationwide, and a division of Dominion Enterprises, is proud to announce Terry Slattery’s promotion to president of For Rent Media Solutions. This change is in recognition of Slattery’s contributions to both For Rent Media Solutions and the multi-housing industry.

“I have had the fortune of working with Terry for eight years now,” said Jack Ross,  president of Dominion Enterprises apartment and employment businesses. “His impact on For Rent Media Solutions and the industry has been substantial. He continues to show his dedication to multi-housing through his membership in organizations like the National Apartment Association, where he was recently recognized as a recipient of a Paragon Award. I am confident For Rent Media Solutions will continue to grow under his leadership.”

Slattery entered the multi-housing industry in 1993, when he joined the For Rent Magazine^® office in Las Vegas as an account executive. Since then, he has held several positions within the company, including national marketing director, vice president of marketing, and vice president of national sales and marketing. He assisted with the execution of LEADS^TM, the original tracking service in the multi-family housing business, now considered the standard in the industry. He is also credited for heading up the group that created ForRent.com^®, one of the nation’s leading apartment Internet Listing Services.

“I am honored to step into the role of president of For Rent Media Solutions,” said Slattery. “I am proud of the success our company continues to experience and look forward to finding more innovative ways to promote our clients through a combination of print and Internet services.”

Slattery is very active in the multi-housing industry, attending many industry conferences and serving as a board member for the National Apartment Association. In 2007, he was appointed chairman of the National Supplier’s Council. In this position, he co-chaired the NAA Education Conference and Convention in Las Vegas and oversaw the development of the National Suppliers Council. This is the highest level that a supplier can rise to in the multi-family industry.

In his last role as the vice president and general manager of For Rent Media Solutions, Slattery brought innovation to the industry through new initiatives such as online video and mobile technology. As president, he will oversee all aspects of print, Internet, production and operations for all For Rent Media Solutions publications and Web sites, including: For Rent Magazine^®, ForRent.com, Apartamentos Para Rentar^®, CorporateHousing.com and After 55^TM Housing and Resource Guide.

I saw this article on AOL Shopping and it’s title immediately captured me…. “What Your Christmas Tree Says About You.” So of course, being the curious body I am, I had to click on it and see what my tree says about me! Check it out……

Fresh Cut:
A grown-in-the-ground tree not only has roots but is deeply rooted in ancient Christmas tradition. If your family takes the time each year to find their own fresh fir, that probably means that you have tremendous personality tied to old-fashioned traditions as well. Often, people with real trees like to go ‘by the book’ and are authentic. It also suggests that you are a diligent and reliable individual and you find joy in the simple things in life.

Artificial:
A faux tree is frequently favored by the frugal, because after a year or two of use- the artificial tree would have paid for itself. If you’re one of the millions of Americans who decorate fake branches year after year, you might be someone who values convenience too– once an artificial tree is completely set up there’s no extra maintenance required to keep it pretty.

Pre-Lit:
Even more frugal & efficient than an artificial tree is one covered with permanently placed lights. If you have a pre-lit tree then you probably are a perfectionist and know how to prioritize well, valuing your time & knowing when to cut corners in order to enjoy yourself and the holidays as much as possible; inarguably the worst task when it comes to tree trimming has to be hanging the lights, and eliminating this chore is sure to make spirits bright!

Tschotschke Christmas Tree:
Sentimental people love to cover their tree with all kinds of ornaments and goodies, with every glance comes a new ornament discovery and often unexpectant insight into the family life. If your tree is covered in trinkets and tschotschkes, you are probably an open individual who is comfortable with expressing and sharing yourself. Chances are your considered child-like and playful when it comes to Christmas.

The ‘not’ Christmas Tree:
If you choose to display a decorated palm tree or topiary instead of the traditionally triangular Christmas tree, you’re certain to be the jovial, humorous type who is perhaps a bit impish and prone to practical jokes. Because you know that everyone who visits will have comments (both critical and complimentary) you might be attention oriented year-round as well.

Upside Down:
You’re always full of surprises and your unexpected ways often lend to mixed messages being sent out about your personality. Chances are you’re actually pretty traditional at heart but you love turning the expectations of others onto their heads (no pun intended). You might be the gluttonous sort- many families choose upside down trees because they can fit more presents underneath.

Half Christmas Tree:
You are determined to make your childhood Christmas memories come to life again, whether you actually have the space to do so or not. You are a creative problem-solver and also someone who satisfies their desires no matter what, your main tools being thoughtfulness and elbow grease. You are probably the innovative type if you’re seeking out a half tree, as many families aren’t even aware of this type of tree.

Snow Covered:
Idealist love snow-covered Christmas trees because they are artificial representations of a traditionally ideal “White Christmas”. Imaginative types enjoy this type of tree as well because although the blanket of plastic white flakes would never be mistaken for real snow, it allows one to stare and dream of the delightful real thing.

Uniquely Colored Christmas tree:
Artists and the creative types just love to express themselves, especially with color and the unexpected twists in ordinary things. What better way to make a huge statement than with an off-color Christmas tree? Other people that take pleasure in an unusually hued holiday tree include those visual perfectionists that are extremely obsessed with keeping their home color scheme unmarred, even if it’s just for the holiday season.

Table Top Christmas Tree:
Just because your main tree is a table-top tree doesn’t mean your Christmas spirit is in miniature too. You may be taxed for space, but some table-top types might just feel less is more and may be most interested in the emotional joy of the season without having much of a need for a prominent physical representation.

While the later options are a bit more exotic, it is interesting to think how your holiday décor says a lot about your spirit both in and out of season.  So what’s your take? Do you believe that a Christmas tree really can give you signs of who the owner truly is???? Based on mine I’m frugal (cheap) and only care about convenience (lazy). While I don’t care too much for the description, I can admit that those two items aren’t far from the truth during the holiday season! Ha ha

If you really want to get a good laugh, check out some of the photos from this article “What Your Christmas Tree Says About You“, I particularly like the ‘uniquely colored Christmas tree’ option! J Happy Holidays!

While the holiday season is one of the most treasured times of year (it certainly is for me), it can also be one of the most wasteful times of the year. Think about it, gifts being purchased that may not ever be used, holiday cards bought, the colossal gift wrapping options and of course our beloved holiday lights!! It really appears to not be the most energy efficient season and we at ForRent.com want to help you ‘go green’ all year long. So we’ve provided you with a couple of environmentally-friendly ideas for you to incorporate this holiday season.

E-Cards:
With the advancement in technology we are now able to send a massive amount of greetings via email. Now I, much like my grandmother and great grandmother, would prefer doing the more meaningful option of sitting down and hand writing little notes to each of my 20 family members, but I realize that isn’t always convenient. So this year I am going to email a majority of my holiday cards (sorry, gotta send grandma and great grandma the personalized card…its tradition). Not only will that save me time and money (a lot of E-cards are FREE), but it will also help reduce the amount of paper I would be using during the holidays, which brings me to my next topic of discussion…..

GREEN Gift Wrapping:
No, I’m not just talking about the color! I’m talking about the reusable, recycled paper. You can find a vast amount of stores and websites (amazon.com for example) that sell recycled material for packaging options. There are large rolls of brown recycled paper for wrapping gifts or bags for your hard to wrap gifts. While they may not be the most attractive or holiday themed, they allow for much more creativity! Get your markers, colored pencils, stamps, paint, whatever and start decorating! Getting the kids involved would also be a bonus gift for the relatives. Something they most certainly will cherish!

Holiday Lights Get a Makeover:
In case you didn’t know, and I didn’t, there is an option for holiday lights that is much more energy efficient. As you know with my previous tips, I am an advocate in shutting off appliances (or anything plugged in) while its not in use. Having strings of lights plugged in throughout the night for 25 days can be quite costly, not to mention wasteful.  Solar lights are the solution! They are charged during the day from the sun, automatically turn on and run continuously through the night. You just need to place them in areas where they will receive direct sunlight so they can charge. Most do require rechargeable batteries which are powered through the day and can last for up to 12 months!! While the solar lights are out numbered by the more traditional lighting methods, they are growing as the trend for ‘going green’ continues.

So there you are, some quick tips for choosing an eco-friendly holiday season. If we’ve left any out, please share! Waste not, want not was what my mother always said!!