We have been informed by the office of the bill sponsor that they are working with the Illinois Association of Realtors on a compromise. We have no way of knowing if the application of the homestead exemption on a leased property will be protected. IAR has made no statement that they share our specific concerns on this bill. If the right to apply for the exemption on a leased property is removed the rents on those properties would need to be increased by $50 or more per month. That type of increase will result in significant turnover. In addition, if the exemption is removed immediately then the tax increase would need to be absorbed from your operating income until your leases expire and the rents can be raised.

We need to make contact with our own Senators and with the bill sponsor, Senator Munoz. Senator Munoz can be reached at (773) 869-9050. We also need to have tenants who are receiving the benefit of the reduced tax in lower rents make calls as well. Attached is a form letter to give to your tenants. You may just write in the contact information for their Senator or make any other changes you want to personalize the letter for your use. It is very important to get this out immediately. Calls must be made before November 29th. We waited to see if this issue would be resolved but because the status is uncertain the PAC feels it is necessary for IRPOA members to speak up. Below is a link to find the contact information for the Senator who represents the tenants of your property. Just search using the address of your rental and write in the name and contact number for the Senator who represents your tenant.

FIND YOUR LEGISLATORS

The City of Champaign is run by the City Manager and not the Mayor, so how would you describe the role of the Mayor in our community? How do you plan to fulfill that role?

Over the past fifteen years, Champaign City Council has taken steps to limit property ownership rights. The Aggravated Nuisance Ordinance, Common Area inspections, a back-and-forth on Section 8 issues, mandatory snow removal and mandatory recycling are just a few examples. What impact do you anticipate your plans for the direction of the City of Champaign will have on property ownership?

Do you think government should apply standards that are different for homeowners than for owners of multifamily property? Why?

Hundreds of residents and millions of dollars of property in West Central Champaign are affected by flooding due to antiquated storm drains. What steps will you take to address the needs of these taxpayers, and how do you think work to relieve this problem should be funded?

The City of Champaign has worked to successfully cut expenses over the past few years, and yet it is still a challenge to match the income to outflow. Please describe the basic approach you think should be used to balance the budget.

The Mayor is also the Liquor Commissioner in Champaign. The person who holds that title has a great deal of indirect influence over things that happen in and around Campustown. Please name an issue you expect the Liquor Commissioner to have to face in the near future, and how you would handle it.

On the lighter side, who’s your favorite comic book character, and why?

Dear Candidate:

The Central Illinois Apartment Association would like to get an idea of your positions regarding property ownership and leasing. To accomplish this goal, we would ask you to please consider answering the seven questions below. For the sake of clarity, permit me to state we are asking both mayoral candidates to participate. The C.I.A.A.’s newsletter is now distributed on the web, using a blog. We do plan to make some or all of your responses available in that newsletter, so they will be accessible to our members and to any individual who visits our site (www.CIAA-Live.com).

We ask you please to e-mail back your responses by Friday, February 25. Any questions can be directed to me, and my contact information follows after the list of questions.

Thank you very much for your consideration of this request, and thank you for offering your time and talents as a public servant.

Andrew Timms
President, Central Illinois Apartment Association

“Historic change” is an expression which has gotten a lot of use recently. Elections are over and, across the spectrum of political position, people are saying voters have used the ballot box to express their view that things have to be different in their world. How much different? Well, that depends.

But where was I to start?
The world is so vast, I shall start with the country I knew best, my own.
But my country is so very large. I had better start with my town.
But my town, too, is large. I had best start with my street.
No, my home.
No, my family.
Never mind, I shall start with myself — Elie Wiesel

Are citizens like you and me going to be involved in the process, or are we just going to vent our frustration by filling-in some ovals and then expect others to do the work? The biggest question is: How willing are we to be the change we wish to see in the world? This big question goes beyond the boarders of politics. It goes into every area of our lives, including our professional ones.

Where are we willing to be different so our world can be different? Do we want better clients? How are we going to be different so better clients recognize a relationship with us? Are we interested in less government oversight into our profession? What are we doing to promote responsible practices?

Our “civic duty” of voting takes just a few minutes out of our year. Our “civic duty” to ourselves, our family, home and beyond takes much more dedication. It takes involvement and development. It takes being change.

Your association welcomes your involvement in the Legislative Committee, the Marketing Committee and more. Talk to any one of the leadership team (CIAA[at]CIApartments.com) or to Marita Booker (Marita_Booker[at]SBCGlobal.net) about your interests, so you can be matched with volunteer opportunities that align with what you enjoy and your plan for development.

“Your power is proportional to your ability to relax.”

— David Allen: Productivity consultant, author, and lecturer

This season, more than any other, seems to be the season for getting ready for the next season. We’re getting ready for winter at the same time we’re getting ready for Halloween at the same time we’re getting ready for the holidays at the same time we’re making our New Year’s resolutions at the same time we’re getting ready to close out the financial year and file taxes. This doesn’t even include all the things for which we have to prepare as individuals. Maybe a birthday, anniversary, or a child in a school presentation. Makes us tired just thinking about it all.

What’s the alternative? We all know that planning is important. Motivational author Robert Stuberg paints a clear picture when he says, “Goals give you the power to predict your own future.” That sure makes sense. And it’s probably right too. In fact the advice is so powerful it distracts us from two important questions: “Where is the future, and who lives there?” The answers are instructive: “Nowhere,” and “No one.”

So what’s the point? The point is that we are often so concerned about the future that we neglect the present. Sure, we need to plan ahead. That is undeniable. See someone who is not planning ahead and you are looking at a calamity waiting to happen. We just have to stop planning ahead too. We have to do both. At the same time. We need to plan ahead and we need to be fully present all the time, when we’re planning and when we are executing. Otherwise our plan will be incomplete and our execution will suffer. What’s more, we get worn out because in our thoughts we are always working over what we have to do next, never enjoying the task or giving ourselves credit for the accomplishment.

What then, are we to do? Work your plan. Get the gutters cleaned and stock up on de-icer for the walk. Simply put all of your attention into what you are doing. Driving to the store to get batteries for the CO or smoke detectors because turning back the clock is a traditional reminder to replace them? Put your attention into driving to the store, not what type of batteries you are going to purchase. The time to think about batteries is when you are standing in front of the display. Until then, just be in the drivers’ seat devoting your awareness to the task of driving.

And remember too that we need to take breaks. Our bodies and our minds need them. As counterintuitive as it is, we actually are more productive when we include frequent breaks. We don’t just feel like we are doing more, its been proven we actually have more output when we rest for as much as a third of every hour. Can’t take a break for five minutes out of every fifteen? Prepare to set aside real down time when the only thing you are doing, physically and mentally, is being here and now. Investing in your present will ensure a brighter present . . . later on.

To ameliorate the situation, consider addressing the issue of security deposits a month before the end of the lease. Sharing the following information with your tenant may help smooth the move out process:

Move In/Move Out Checklist

Provide the tenant a copy of the move in and move out checklists. The move in checklist shows the condition of the apartment when the tenant took possession. Include a note that indicates your desire that the apartment be returned in move in condition so that you can return the full deposit. You might suggest that tenants can request a walk-through to be sure they have met your standards.

If you attended Mr. Landlord Jeffrey Taylor’s presentation in April, offered by the Central Illinois Apartment Association and sponsored by our partners First Federal Savings, then you heard him describe steps you can take to have the unit “move-in ready” before the end of the lease. The procedure he describes makes it much easier to return the security deposit. Contact me if you’d like to know more.

Deposits Are Not Rent

Remind the tenants that security deposits can not be used for the last month’s rent.

Time Frame

Share with the tenants information on the State of Illinois’ required time frame for returning security deposits. It is as follows:

“A landlord leasing residential real estate containing five or more units who receives a security deposit may not withhold any part of that deposit as compensation for property damage unless he furnishes to the tenant, within thirty days of the date the tenant vacates, a statement of damage allegedly caused by the tenant and the estimated or actual cost of repairing or replacing each item on that statement.

If no such statement is furnished within 30 days, the landlord must return the security deposit in full within 45 days of the date the tenant vacated.”

Interest

Share with the tenants information on the State of Illinois’ or your community’s requirements for paying interest on security deposits. The State of Illinois’ requirements are as follows:

“If a building contains 25 or more residential units, the landlord must also pay interest on the deposit from the date it was paid, if held more than 67 months. (Interest is calculated at the rate paid by the largest bank in Illinois, as determined by total assets, on a passbook security account.)“

In Urbana, the regulations are more stringent. Urbana requires all landlords to pay interest on security deposits, no matter how many apartments are in their building, if the security deposit is $100 or more. If the security deposit is $99 or less and the building contains 25 or more residential units, then the State of Illinois’ requirements to pay interest is applicable.

If a landlord fails to return the security deposit promptly, the tenant can sue to recover that portion of the security deposit to which the tenant is entitled as well as the recovery of their legal fees. Therefore, it’s important to document the condition of each unit, follow the prescribed time frames and communicate with your tenants. You may find that this reduces your move out stress as well.

You’ve got a friend in Springfield. Like any good friend, you’re always in their thoughts and they’re looking out for your long term best interest. It’s no surprise, I’m talking about the IL Rental Property Owner’s Association (IRPOA). Over the past several legislative sessions, IRPOA has grown into a recognized name at the Capitol. Debbie Broadfield, a lobbyist for IRPOA from Consulting4Biz reports that “Legislative staff now reaches out to IRPOA’s team of lobbyists to ask their position on bills. On your behalf, they have been working on amendments to bills that the Association opposes as well as introducing legislation that is positive for the industry.”

IRPOA’s work is important to protecting your property rights and they shouldn’t be the only voice our elected officials hear. Your voice is essential. In fact, Senator Dale Righter knows IRPOA’s message as a result of hearing from his constituents. He’s quick to add that hearing from individual constituents is “always the best feedback and input I can get.”

CIAA has established a Legislative Committee that works closely with IRPOA and our elected officials. Please consider joining this committee. Chris Hamelberg is the committee chair. Please contact him for more information.

Here are some examples of what IRPOA worked on during the last legislative session:

Tenant Radon Protection Act (HB 5224 – sponsored by Rep.Dan Reitz)

Would have created legislation that required landlords provide tenants with an Illinois Emergency Management Agency radon guide for tenants; a landlord would have had 30 days to obtain a radon test after a tenant’s notification of a test revealing radon; provided that a measurement by a radon contractor would be valid for 5 years; and deleted provisions concerning the termination of a lease. As amended, this bill would have strongly recommended testing and mitigation, but did not mandate it.

This bill passed out of the House and died in the Senate.

Notification of Sex Offenders in Multi-Unit Dwellings (HB5421 – sponsored by Rep. Deborah Mell and opposed by IRPOA)

Required owners, landlords or management of multi-unit dwellings to notify residents that a sex offender resides in the multi-unit dwelling and that, prior to moving in, notify residents that a sex offender intends to reside in a multi-unit dwelling. Also provided that it is the duty of the owner, landlord, or management of the multi-unit dwelling to periodically check the Statewide Sex Offender Database to determine if sex offenders reside within the multi-unit dwelling. Provided that an owner, landlord, or management of a multi-unit dwelling is immune from criminal or civil liability for an act or omission made in good faith in reliance on the information in the Statewide Sex Offender Database.

This bill died in the House.

Amendment to the Code of Civil Procedure (HB5523 – sponsored by Rep. Karen Yarbrough)

Provides that it is an affirmative defense to a forcible entry action if the demand for possession is based on: the status of the tenant, lessee, or household member as a victim of domestic violence, dating violence, stalking, or sexual violence; an incident of domestic violence, dating violence, stalking, or sexual violence against a tenant, lessee, or household member; or criminal activity engaged in by a member of a tenant’s or lessee’s household or any guest or other person under the tenant’s, lessee’s, or household member’s control directly relating to domestic violence, dating violence, stalking, or sexual violence and against the tenant, lessee, or household member. Provides that the existence of the affirmative defense does not prevent a landlord from seeking possession solely against a tenant, household member, or lessee who perpetrated the violence.

This bill passed both chambers.

Licensing and Regulation of Landlords (HB6257 – sponsored by Rep. Anthony Deluca)

This legislation provided that the corporate authorities of any municipality may license and regulate landlords, as defined by the corporate authorities of the municipality, within that municipality.

This bill passed out of the House and died in the Senate.

IL Bed Bug Task Force (HB6439 – sponsored by Rep. Ken Dunkin)

Created the Illinois Bed Bug Task Force within the Department of Public Health. Provides that the Department shall provide staff and administrative support to the Task Force. Provides that the Task Force shall make recommendations concerning the prevention and treatment of bed bug infestations; standards for the disposal of infested items; certification of pest management professionals; and the development of public education materials. Provides that the Task Force shall consist of 10 members appointed by the Governor. Sets forth criteria for Task Force membership. Provides that the Task Force shall report its findings to the General Assembly on or before January 1, 2011.

This bill passed both chambers.

Amendment to the Elevator Safety and Regulation Act (HB4766 – sponsored by Rep. Jim Sacia)

Would have amended the Elevator Safety and Regulation Act. The legislation provided that the Act, with the exception of a new provision, shall not apply to any county in the State other than the counties of Cook, DuPage, Kane, Lake, McHenry, and Will. Provides that any county other than the counties of Cook, DuPage, Kane, Lake, McHenry, and Will, and any municipality that lies within any county other than the counties of Cook, DuPage, Kane, Lake, McHenry, and Will, may set up its own inspection system for elevators and lifts by local ordinance.

This bill died in the House.

Amendment to the Code of Civil Procedure (SB3614 – sponsored by Sen. Duffy / companion bill HB 6207 sponsored by Rep. Ron Wait)

This legislation would have amended the Code of Civil Procedure and provided that a person entitled to possession of land or a building may be restored under several identified circumstances, including: when a forcible entry is made, entry and restoration of possession may be made under the supervision of a law enforcement officer or an employee of a private security agency certified under the Private Detective, Private Alarm, Private Security, Fingerprint Vendor and Locksmith Act of 2004 (instead of when a forcible entry is made).

At the request of IRPOA, Senator Duffy and Representative Wait both held the bill in order for IRPOA to meet with the opponents; meetings are still taking place and we are hopeful that we seek resolution to some of these issues without legislative action.

Limit Restrictions of Private Process Servers (HB5290 – supported by IRPOA and sponsored by Rep. Franco Coladipietro)

Some counties in Illinois restrict the use of private process servers. This bill will limit that restriction and establishes a system for service to individuals detained in a correctional facility.

This bill is currently in the House on the order of concurrence for Senate Amendments 1 and 2.

Amendment to the IL Municipal Code (SB 3564 – Introduced on behalf of IRPOA by Sen. Bill Haine)

In provisions concerning sanitation code violations, this legislation provided that a violation notice and report form shall state that if compliance cannot be completed prior to the hearing date, then the respondent shall provide to the sanitation inspector a proposed date by which the violations will be corrected. Provided that, if a municipality gives notice of a sanitation violation by mail, then the municipality shall send a copy of the violation notice and report form to the address appearing on the property tax records. Provided that it is an affirmative defense to a sanitation code violation if the property or portion of the property where the violation occurred is under the control of a lessee or contract buyer responsible for maintaining the property and the leasehold interest or agreement for deed is being terminated. In provisions concerning nuisance liens for (i) cutting and removing neglected weeds, grass, trees, and bushes, (ii) controlling pests, (iii) removing infected trees, and (iv) removing garbage and refuse, it defined “reasonable notice” of a nuisance violation. Included refuse in the provisions concerning the removal of garbage from private property located within the municipality. In provisions authorizing municipalities to provide pest-control activities on private property located within the municipality, removes undesirable arthropods and mice from the definition of “pests”.

Due to opposition the bill was held in the Senate; IRPOA will continue to work on this issue and plans to reintroduce this again next spring.

Crime-Free Rental Housing Ordinance (SB 3075 – sponsored by Sen. Maggie Cotty and opposed by IRPOA)

Provided that the corporate authorities of a non-home rule municipality may adopt a crime-free rental housing ordinance for the purpose of deterring crime in residential areas. The crime-free rental housing ordinance may require a property owner to obtain a valid residential rental license from the municipality and attend a training program or seminar concerning crime prevention before he or she may obtain a residential rental license. The language provided that an ordinance may require that any lease entered into for residential property located in the municipality include a provision or an addendum that prohibits a tenant, a tenant’s family member, or a guest of the tenant from engaging in, facilitating, or permitting any quasi-criminal or criminal activity as defined by federal, State, or local law.

This bill died in the Senate.

The perception of security is one such quality. Your prospect became your client in part because they have a sense that their belongings, and even their lives, will be secure in the dwelling they are leasing from you. While you cannot and do not want to take full responsibility for your residents’ personal safety, you should take a look at those risk-reduction matters over which your business does have control and be alert to any opportunities for improvement.

Randy Davis of Downstate Detective Agency recommends the first place to start is to “Understand security. Security can be equipment, policies, or personnel that are in place to prevent undesired activities. Security is also the sense one has when on or about a property. Each can influence the other but the difference should always be considered when making ‘Security’ decisions.” Schedule time regularly, once or twice a year or perhaps more frequently, to review your business’s effectiveness at preventing problems before they start. For example, take a walk around all the public space to ensure self-latching doors are closing fully, carpets are smooth and do not present trip-and-fall potential, exterior lights are working properly. An exam like this should also include how your business handles your clients’ personal information. As Colin Haley and Penelope Parmer of Thomas, Mamer & Haughey, LLP explained to us at our June 2008 meeting, we need to have a plan in place for how we handle information such as birth dates and Social Security numbers. The Federal Trade Commission distributes Protecting Personal Information: A Guide for Business with tips on how to create a plan for keeping data out of the wrong hands.

When it comes to instituting procedures, Neil Fotzler of Abe Lincoln Realty advises, “Stick by your guns.” In his experience, a great threat to property owners and residents alike is not having screening practices or worse, not using them. According to Fotzler, “People with problems bring their problems with them.” Fotzler says, “If you screen your residents and stick to your guns with your application requirements, you’ll get good clients with good judgment and you won’t have an unmanageable problem with security.”

In his years as a sworn police officer and now a licensed private detective, Davis has also found that “The more involved property owners and managers are with their clients, the better the property and the less incidence of problems.” So next time you have a chance, say hello to your residents and ask them how they are and really listen to their answers. When you show you care about them, they’ll cooperate with you in the process of protecting themselves and your property. For three other tips from Randy Davis of Downstate Detective Agency, download this page.

You probably can’t keep up with them by yourself. The proposals come fast and furious: Vacant Structure Ordinance, Nuisance Ordinance, Rental Registry, Section 8, Criminal Background Checks, etc.. People who have never met you are trying to have a say in your business. If you want to affect the outcome of potential government regulations by yourself, you’re likely to feel like the bug. The good news is that the Central IL Apartment Association and the IL Rental Property Owners Association (I.R.P.O.A.) (http://bit.ly/c2trL9) are working together and with other interest groups to monitor government ordinances and advocate for and with you.

In some cases, the issue a governmental body is trying to solve has merit. However, the language being proposed is either too broad or in application could be too restrictive to effective business practices. For example, the Champaign City Council is considering an ordinance to address vacant buildings (http://bit.ly/a1z9XX) whose owners are ignoring city notices that their buildings are in violation of city property codes. Some of these buildings pose fire risks, are a blight to the city and can be a center for criminal activity. The concern is understandable. City officials report current enforcement rules to be insufficient and cumbersome.

The trouble is that the ordinance as submitted to the City Council for study could conceivably ensnare all private property in the city limits. In the last version of this ordinance a consequence of being named a nuisance property was that it must be brought up to full compliance with all codes before it can be removed from the list. The C.I.A.A., in cooperation with Champaign County Chamber of Commerce (C.C.C.C.) (http://bit.ly/a9m5xW) and the Champaign County Association of REALTORS® (http://bit.ly/9yXfI5) successfully lobbied to send this back to staff so language could be clarified. “Working with the Central Illinois Apartment Association was a great partnership,” says Andrew Proctor, Public Policy Manager for the C.C.C.C.. “Their knowledge base about residential matters was very helpful in crafting our message to lawmakers.”

In many cases, the legislation shows little regard for our industry. Recently a State Senator began advancing legislation requiring property owners and managers in Cook County to identify to the court the number and ages of children and seniors, as well as any disabled individuals, at time of eviction proceedings (http://bit.ly/byKGk3). According to Paul Arena, Political Action Committee Chair for I.R.P.O.A., Rockford Apartment Association president (http://bit.ly/8Z8jGP) as well as property owner and manager for over 20 years, “There are other people out there who are active and moving their agendas forward and unless we are active the legislators aren’t going to know about our concerns and how we are impacted.” Many citizens outside of our business don’t stop to think that we must respect and be sensible about protecting our clients’ personal information. Arena and others managed to have this bill pushed back for consideration in the fall session.

We’ve had successes on your behalf, and we need your help. Arena says effectiveness comes from making our voices heard. “Our group is based on grassroots participation of the members. It is very important they make contact with the people they vote for so that when an issue arises they can make a phone call and be recognized.” Proctor adds “If you just want to sit back and let the next guy worry about it, probably nothing is going to happen.”

When it comes to regulation, we have some choices. If we decide we want our businesses to be more like the windshield than the bug we can behave like professionals, lessening the need for outside intervention. After that, we can be engaged in the process so that laws that are passed have purpose and are best for us and our residents.

Having a plan for regular learning and development is essential to maintaining your business, and critical to growing it. You may think that getting the right price from a contractor or pricing your product is at the foundation of keeping your business alive. They are not. Constant development of your knowledge and skills are. It’s this simple: If you are using yesterday’s method for negotiating a discount or last week’s information for pricing your product, where are you? Somewhere in history, and not in the here-and-now.

With twenty-five years in the industry, Bill Warren of Jetz Laundry Systems, Inc. has a base of knowledge that is broad and deep. Even though little could surprise him these days, Bill is still dedicated to learning. Some of the things he does are “Learn about products I represent, gather as much information as I can from the sales representatives for the machines we lease; stay abreast of the latest and greatest on the market. I also survey what my competitors are doing.” In addition, Bill says, “I like to read a lot of the articles that come out in newspapers talking about laundry services and what people think about the laundry business.” Bill’s experience has taught him to value these practices because “It’s more than just putting a washer and dryer into a room. Professional development helps to understand what your client is looking for. Regular education makes finding  the proper application to satisfy your client’s needs and their end user’s needs possible.”

Some people consider professional development “boring.” In their mind, it conjures-up pictures from their school days: sitting in class listening to a lecture or spending hours alone with their nose in a book. Lots of business owners got into business to be around customers. Plenty of them like to mix and mingle, and be social. For those extroverts who get their batteries charged through interaction, there is development by association. Glenn Berman, of R Rentals gets almost all of his ongoing training by reaching out to his peers. When he wants to learn something or stay ahead of the curve on a topic such as legal matters like evictions, Glenn picks up the phone and calls other association members, or attends association meetings. He says, “Because most of us are smaller operations we don’t have the wherewithal to have things like lawyers on a retainer; we have to rely on each other for our knowledge base.”

What should your personal, professional development plan include? Here are some ideas:

• A budget. You are purchasing products and services. Be prepared to make an investment in you and your business.
• Read. You might start with a book a month, and pick up the pace from there. Don’t have time to read, or need some motivation since you don’t enjoy reading? Check out How and Why to Find Time to Read by Mark Harrison. By the way, University Group maintains a free lending-library of real estate related books and published materials. Call and learn more about how to check out these resources.
• Attend presentations. Monthly association meetings are a great start. You can get out, away from your business for a fresh perspective, and learn how other people have succeeded or failed at the same problems that face you. Get ahead by attending special training sessions and seminars, like the Mr. Landlord event held this month. “If you want to be the best Property Professional that you can be you need to attend the upcoming Mr. Landlord convention. Jeffrey Taylor (Mr. Landlord) has over 25 years of landlording experience that we can all learn from. Do yourself a “professional” favor and meet Mr. Landlord April 20, 2010″ says Randy Hughes of Hughes Real Estate.
• Listen to CD’s, podcasts and other recorded material. Instead of having the radio playing mindless chatter while you are working, why not pick up a few tips as you go about your business?
• Converse. Grab the phone or send an e-mail and engage others whom you trust. You’d be surprised what valuable information your fellow professionals are eager to share with you.

“Developing yourself professionally begins with a commitment” says Randy Hughes. “You either commit to be the best you can be in your field or you end up “average.” In this day of lightning communications, social networks and rapid technological advances, “average” is not good enough.

You have how many units? 10? 50? 600? Then won’t you be excited by a recent survey done for Apartments.com: Of the 1500 respondents, 95% of them indicated they plan on moving in 2010. Read the news release here. You’ve probably already done the math on how many residents that means for you. 9? 48? 570? No matter who you are this could have an enormous impact on your business. Of course, this is great news if you have a side income from leasing moving trucks. For the rest of us though, it is almost as chilling as a blast from the Arctic Express.

Once we thaw out from being frozen with anxiety, what are we to do? First, we remember what we have known for years, that some of our clients are going to move. It just happens. Enough said. What we must consider is how we keep that number to a bare minimum.

At this point we really get to work. The next step is to have a plan. This plan should not be limited to drastic situations like the one predicted for this year, it should be foundational to our leasing business. Our retention program should actually be integrated into our new resident registration. According to Mary Spain of Apartment Finder, “50% of your current residents will have decided with the first 7 days of moving in whether they plan on renewing their lease.” Providing a positive experience for our clients is important from the very first contact we have with them, and doesn’t stop. Spain adds “40% of renewal decisions are made within the first 8 months of the lease.” What is the number one reason why people move? “Inadequate service.” From their first phone call or walk-in to our offices, to the most recent maintenance visit, our customers are looking to feel welcomed to their homes, to feel a sense of place, to be wanted. Spain reports there is a bonus for us too: “Residents are willing to pay more to receive better service.”

Keeping the residents we have is about the basics. We remind ourselves, and we have a system for reminding ourselves, that we are selling our property during every interaction. As Cythinann King teaches in her presentation, we need to know our Product, Package, Price, Promotion or Publicity, Placement in the market and Personal Selling. We’ll always be using this knowledge whenever we market our properties. Most important though, we have to put some of our passion into the final point, Personal Selling. The research from which Spain draws indicates the second reason why people lease, after location, is the “personal selling style of the consultant.” We humans justify our purchase logically, and we make most of them emotionally. It is our job as Property Professionals (and Vendors as well) to help our prospects and customers feel they have made the right choice. And by feel I mean have sensations of comfort and confidence. Experience gladness; be aware, on some level, that they are in a professional relationship that works for them. That they are part of a community. Whether we just met the person thirty seconds ago, or whether we have been enjoying the privilege of their business for years, we are filling our units when we make an effort to understand our clients’ needs first, and then try to fill them.

If you’d like specific ideas on how you might improve retention in your business, try some or all of these: network with other association members and ask for their best practices, post questions or advice in the Comments section of this article, contact me (AndrewR[at]SpectraART.com) for a suggested reading list, or enlist the aid of a consultant. Remember too to come and see Mr. Landlord at Hawthorn Suites on April 20. You’ll leave there with his time-tested recommendations.

Dan Hamelberg of The University Group, and Susan Jepsen of Reynolds Towing, Inc. were awarded the Property Professional of the Year Award and the Vendor of the Year Award for 2009 respectively by unanimous vote of the Nominating Committee and the C.I.A.A. board.

If you don’t know Susan by name, you have seen her. She is not only participating at virtually every function, she is a driving force behind making it happen. She has served four years as treasurer for the association, and has also put sweat and effort into recruiting new members, organizing events, making recommendations for the Trade Show, and getting out to show support for property owners with politicians, among other acts. She is even ready to take tickets for an event at the door if needed. Susan says she does it because she knows the direct impact her volunteering can have for Reynolds Towing. According to Susan, “Towing is not a typical business and being a vendor member of the association helps customers to better understand our business. We have gained many customers over the years for anything from a jumpstart to a heavy duty equipment hauling job.”

It should be noted that Susan’s dedication to giving back is a philosophy endorsed by her employer. Susan adds “Reynolds Towing is also very involved in the community, we participate in Touch a Truck day, Fourth of July parade, Christmas parade, and this year will be helping with the Illinois marathon. As our motto says Any Time – Any Place – Any Size.”

Dan Hamelberg’s support of your Central Illinois Apartment Association goes back to its infancy. Dan was there when it all got started and has been prepared at every turn to nurture it to its current health and vitality. Dan has always been prepared to give, serving twice as association president, being vocal in the community about issues affecting the real estate investor, encouraging membership education by hosting a library of resources, and being the catalyst behind a string of successful Trade Shows, to name just a few of his contributions.

The growth of The University Group is due in part to the lessons Dan has been able to learn and teach during his years with the association. Dan is particularly proud of the opportunity the C.I.A.A. provides to investors who are new to the industry or for whom it is a secondary source of income. He is pleased to be involved in shaping a leasing marketplace that is fair for resident and investor alike. Dan’s efforts in the association to foster cooperation and collaboration fit nicely with those of The University Group, a family-owned and family-run business that prides itself on offering safe, centrally-located and reasonably priced apartments on the University of Illinois campus. When we work together, we all can thrive.

Thank you Dan and Susan, for giving to us, your peers in the association, in 2009 and years past. We are grateful for your example.

Being president of an association like the Central Illinois Apartment Association opens your eyes to the need for excellence and involvement in issues relating to your life’s business. I became a landlord at the age of 19 and I am still amazed at how much about this business I do not know. We all strive to be better property owners and landlords, but it is like trying to hit a moving target. Change is inevitable and particularly in this economically challenging time period.

As president of CIAA I was privileged to meet and interact with many top professionals in our community. From city council members to community leaders the Central Illinois Apartment Association is a respected entity with a long history of portraying the property owner and property manager as a professional business person. This kind of positive public exposure is important to help offset the oftentimes negative image portrayed by the media and a few of our customers.

This month’s general meeting will be held on December 17 and will focus you and your input into the coming year. We will also hold an election of officers for 2010 and beyond. Please attend and give us your input. Our association is only as strong as the people who are involved.

Finally, I would like to thank my Board of Directors (for all of their hard work this past two years) and Marita Booker, CIAA Coordinator, for outstanding support and loyalty to me during my tenure. It has been my pleasure to serve you as president and I look forward to remaining on the Board of Directors as Past President. See you at the next meeting!

2009, I was asked to attend the Fire Factor Academies at the University of Illinois. Clay Baier, inspector for the city of Urbana, and CIAA board member also attended as one of the organizers and founding members.

Through education and practical applications, the Fire Factory academy is designed to establish a relationship of mutual trust and respect among the University of Illinois, leaders of U of I housing community and the C-U Fire Departments.

Over the many years that I have lived in Champaign I have noticed the towers (sometimes emanating fire from their walls) just east of South Neil Street and North of Windsor Road. I often wondered what was going on in this area of the U of I but never ventured through the back streets off of South First Street to find out.

Upon arrival to the Fire Factor (formally known as the Illinois Fire Service Institute), I was directed to a room full of university students that were watching a video of bar fires that have occurred throughout the United States. The video was real and definitely shocking. The point of showing the student representatives real life video of actual fires was to impress upon them the importance of:

1. Realizing (before you go in) whether a bar or facility is over occupied

2. Looking for all exists once you enter a building

3. Thinking about which exit you will use if a fire breaks out (80% of people will use the same exit they came in – whether it is the closest and least used exit or not).

After an excellent lunch we were all treated to viewing two mocked up dorm rooms set afire. One room had a sprinkler system and the other did not. Can you guess which one faired better? Sprinkler systems not only save lives and property but allow property owners a discount on their insurance premiums.

In addition to watching videos the students participated in an actual search and rescue of a “dummy” located in a building full of smoke, hands on demonstrations of how to properly use a fire extinguisher and hauling a fire hose up three flights of stairs (fully loaded with fire fighter’s clothing and gear).

One of the best benefits of this exercise was witnessing the respect and admiration developed between the students and fire fighters. The students started the day thinking they would be wasting their time and become bored quickly. They ended their day with practical hands on experience that they can use to save their lives AND influence their fellow students.

I ended my day thinking of ways that we can influence our tenants to buy renter’s insurance, keep charged batteries in their smoke and CO detectors, report unsafe conditions to our maintenance personnel, not set off smoke alarms unnecessarily and be constantly aware of building exits and occupancy limits.

Most landlords require a prospective tenant to submit an application prior to approval and occupancy. Professional landlords will consider the rental application information critical to the approval process. High on the scale of value of application information is who the current and past landlord is. By contacting the current and past landlord the professional property manager will find out key information regarding the prospective tenant’s desire to pay rent, take care of the property and reside without conflict with neighbors.

Recently our office had to evict a tenant for non-payment of rent, high traffic (in and out of the unit) complaints by neighbors and constant trouble of one kind or another. Upon discovering where the evicted tenant moved to, we contacted the local landlord and asked how he could be approved by them (one of the largest landlords in the C-U area) under the circumstances? We also asked why they had not contacted us for a reference. We were told he did not list a current landlord on his application! They made their decision based upon a recommendation by a local agency that helps tenants (on a temporary basis) pay their rent when they are about to be evicted.

It is hard to imagine approving a prospective tenant without running a credit check (that would show current and past addresses), verifying employment and talking to the current and previous landlord. These are the tools of our trade. When we do not use our tools our odds of failure increase exponentially.

When landlords do not rely on each other for key information when deciding on leasing property to tenants we miss out on the most important part of associating together. Think of it this way, the tenants in C-U have a tenant’s union and they do work closely together. Does it not make sense that we act as professionally as our tenants?

The heart of CIAA is the Board of Directors. Without good people on the Board our association would die. Therefore, it is very important to not only seek out and find excellence but to assure that the Board has a continuous life. We need your help!

Here are the positions that we need your help finding qualified individuals for:

• President
• Vice President
• Marketing Committee Chairman
• Finance Committee
• Website Committee
• Trade Show Committee
• Educational Programming

On September 16th, the nominating committee (composed of all past presidents) will meet to discuss all suggestions for the above positions. The elections will be held at our December meeting. If you would like to nominate someone (or offer your own name for consideration), please contact me prior to the September 16th meeting. Thank you for your input and concern for the future of CIAA. You can contact me at: randy@hughesre.com