Month: March 2021

On March 8, 2021, the National Apartment Association (NAA) hosted their annual NAA Advocate conference, which gives members a chance to raise key issues in the rental housing industry with legislators. While in past years, NAA Advocate has been hosted in person in Washington D.C., this year’s event was virtual. That said, in no way was it any less impactful.  

Through March 13th, many NAA affiliates will meet with their members of Congress in Virtual Hill Visits to address concerns. This gives a chance for members to share their story at the national level and advocate for themselves, their team, their peers and the industry at large. 

The conference features keynote speakers, Q and A sessions, educational discussions on emerging policy issues and a briefing on what to address in Virtual Hill Visits. 

Here are the key issues the NAA is advocating for and why they should matter to professionals in the property management industry. 

The Housing Crisis Caused by COVID-19 

National rental debt grew to tens of billions of dollars in 2020 due to the pandemic. This has had crippling effects on the property management industry, and if eviction moratoriums continue, it could result in an even more damaging housing crisis. 

To avoid further financial instability and negative impacts to housing supply, NAA members will be communicating to lawmakers the need to provide increased rental assistance and an end the federal eviction moratorium.  

Eviction Moratoriums 

NAA members are asking lawmakers to sunset federal eviction moratoriums to halt the destabilization of the rental housing market. The moratoriums have restricted property owners’ ability to pay mortgages, salaries, property taxes, maintenance and utilities, ultimately putting many properties into jeopardy. This also will negatively impact renters. Once the moratoriums are lifted, many will be unable to afford to pay their debts, causing them to lose their homes. Members of the NAA will be asking for a clear end date to the moratoriums and for Congress instead to offer increased rental assistance. 

Rental Assistance 

The $25 billion in emergency rental assistance that Congress has provided thus far, as well as stimulus checks and unemployment funds, has prevented mass amounts of evictions and provided stability to residents who have been greatly impacted by the pandemic.  

That said, to close the rental debt gap and prevent additional arrears, NAA members will be asking for additional assistance dollars. Members will also be requesting that these payments are given directly to landlords to streamline payments and ensure they can continue to operate their properties. Some state-level NAA affiliates have advocated for this with positive results, and this will quickly address the stress of both landlords and renters.  

Not a member of NAA yet? Learn why you should join your local NAA Affiliate to make and impact!

Housing Affordability 

In addition to the effects of COVID-19, the industry has an overarching issues surrounding housing affordability.  

Section 8 Voucher Reform 

The NAA has long supported the Section 8 Housing Choice Voucher (HCV) program. While it is one of the most successful rental subsidy programs, members are asking for reforms to eliminate regulatory burdens and increase provider participation. Studies have shown that almost three-quarters of rental property owners that once accepted voucher holders now refuse them. This is resulting in a massive affordable housing issue. NAA members are supporting improvements to the HCV program, including: 

– awarding incentive payments to housing providers that are new participants or operate in high-volume areas 
– a mitigation fund so owners can better manage repairs and damages 
– establishing inspection reciprocity to allow owners and operators already subject to other inspection protocols satisfy HCV requirements 

Senator Chris Coons is currently drafting reform legislation that will steady Section 8 funding and encourage participation by private housing providers. A companion House bill is expected, and NAA members are asking lawmakers to cosponsor legislation once introduced. 

The Yes in My Backyard Act 

On a local level, development barriers are increasing the cost of housing across the board. Reducing regulatory and administrative barriers present in individual jurisdictions is one of the most impactful strategies to address housing affordability in the U.S. In cities across the nation, the “Not in My Backyard” mindset is causing a limited supply and increasing demand in rental housing, which lawmakers need to address. 

The Yes in My Backyard Act is designed to eliminate regulatory barriers and encourage jurisdictions to reduce exclusionary land-use policies. This act will promote thoughtful development strategies and regular reporting to encourage further housing development. This bill was passed in the last session of Congress on a bipartisan level in the House, and NAA members will be advocating that it passes when it is reintroduced in the Senate. 

For more information on the NAA’s advocacy, visit their website. 

You may have heard the old proverb, “If you want to go fast, go alone. If you want to go far, go together.” This absolutely extends to the rental housing industry. Building connections with fellow property managers through the incredible network of apartment associations across the country is the best way to learn, grow and affect positive change in the industry. 

We could fill a book with all the associations available to you and reasons you should join them, but two of the largest organizations we highly encourage you to join are the National Apartment Association and the National Multifamily Housing Council. These two organizations do an incredible job supporting property owners and operators.  Getting involved with them is the best way for your organization to learn from peers, get out in front of challenges and influence policy that will ultimately impact your assets in one way or another. 

The National Apartment Association (NAA) 

Getting involved in the National Apartment Association (NAA) through your local affiliate chapter is the best way to network with peers, get support and training, and most of all, advocate for property managers. 

As a leader in the rental housing industry, the National Apartment Association (NAA) is an outstanding resource for advocacy, education and mitigating risk. Many cities and states across the country have affiliate chapters, offering a chance to connect with local industry professionals and stay informed of regulation changes and trends in the industry. 

NAA has a variety of educational programs on their website, and local affiliates provide webinars, meetings and other resources for things affecting your state or region. 

While they offer a variety of resources for property management professionals, one of the most impactful events they host is NAA Advocate. This annual event gives NAA members a chance to share key concerns in the rental housing industry with our elected officials. 

Letting your voice be heard on a national level is hugely important—particularly in a year when so many things have changed. During NAA Advocate, property managers and industry leaders meet to discuss a variety of topics and strategize how to communicate them to representatives. Having the NAA’s support and being surrounded by your peers as you work to affect change is unlike anything else, and property managers owe it to themselves to get involved. 

“Association involvement is so important for property management companies and suppliers. It gives us all education, networking and advocacy opportunities – to share best practices, and work together as an industry, rather than a bunch of individual companies. It has allowed me to meet, and network with some of our industries top executives.” 

– Angi Pusateri-Downey, VP of Business Development at Resman 

The National Multifamily Housing Council (NMHC)

The National Multifamily Housing Council (NMHC) brings together leaders in the multifamily apartment industry. It provides both educational and advocacy opportunities that allow members to collaborate, network and work towards a better future for the industry and the communities they support.  

The NMHC is an incredible resource to review research and insights on apartment industry issues. This includes industry benchmarks, market trends and economic data. The NMHC also provides a weekly Rent Payment Tracker powered by ResMan and other property management solutions. As a leader in this initiative, ResMan has provided critical data to the NMHC regarding the industry’s financial health and the state of the apartment industry. Not only does the Rent Payment Tracker provide insight for industry professionals, but it has provided authoritative, consistent numbers to help guide policy discussions during the pandemic.   

Having this level of insight on a national level enables members to gain context around what’s happening in the industry and gauge their success alongside their peers and competitors. With a mass amount of up-to-date information at your fingertips, you can stay informed and be a better advocate for your industry. 

The NMHC hosts a variety of meetings, webinars and press conferences centered around industry changes, trends, advocacy on the national level and more. They also provide networking opportunities with fellow members, emerging leaders and strategic partners and suppliers. There are a variety of committees within the NMHC that you can get involved with to provide expertise, learn from others and affect change in the industry. 

Throughout the pandemic, the NMHC has put in a tremendous amount of effort in advocating for the industry. With the help of the data they collect, they can accurately measure the market sector and analyze which challenges their government affairs team should prioritize when working with legislators. 

By leveraging data from the NMHC Rent Payment Tracker, the council has been instrumental in securing $25 billion in rental assistance for back-owed rent. Their work isn’t over yet, though. With tools like the Rent Payment Tracker, the NMHC continues to be an effective policy partner, helping policy makers, financial regulators and the media understand our industry performance, current challenges and needs. The government affairs team has continued to advocate for your organization’s interest, which includes an additional $19 billion if the new stimulus bill passes in the Senate. 

As an industry, we’re stronger together. Getting involved in apartment associations like the NMHC and NAA doesn’t just benefit you—your expertise as a property manager is equally beneficial for these associations. Joining these associations allows you to provide feedback, opinions and personal experience as well as advocate for your industry on the federal level. These associations have accomplished an incredible amount, and they can accomplish even more with you as a member. 

Your peers in the industry have been working hard for you. Isn’t about time you joined them? Join NAA and NMHC today! 

In the chaos of the 2020 pandemic and subsequent federal eviction moratoriums, information has evolved rapidly and often, leaving both residents and property managers confused about the rights and responsibilities of all parties. 

With the moratorium set to expire at the end of March 2021, it’s important to prepare for the changes it will set in motion. 

1. You must communicate to residents now what an eviction moratorium is … and that it will end. 

Now is the time to make sure that all residents understand what’s at stake and how you are prepared to help them: 

The moratorium is not rent forgiveness.

Some residents may be operating under the assumption that a moratorium is rent forgiveness. They need to know that they still owe all back and current rent and that after moratoriums are lifted, past nonpayment can lead to evictions. 

Tenants must show that they made an effort.

The Center for Disease Control (CDC) says tenants are supposed to make payments “to the best of their ability, up to the full amount of the rent,” so they may eventually have to show proof of their spending habits and that they made their best effort to pay rent.

One way they can do this is to establish payment plans for your residents. Encourage them to use any available stimulus or unemployment disbursements to begin paying toward back rent. By setting them up on a payment plan, you can be sure you can get some of the money owed to you on a regular basis.

2. The moratorium applies only to non-payment of rent. 

If the emergency moratorium legislation feels like it has stripped you of any resources for protecting your investments, you’ll be glad to know that property managers still have the right to sue for overdue rent, even if they can’t evict for non-payment. 

And they can still evict those who are violating rules. It’s important to remind residents that failure to communicate with their landlord can be evidence of non-monetary default on the lease, giving you the right to take action. For best results, communicate with residents via text messages (the most effective channel for many residents) and keep a record of all communication (in print form). 

Because the penalty for violating the eviction moratorium is quite steep ($200k), we advise you to work with a qualified lawyer in the industry if you decide to take any action. 

3. Prepare now for clusters of vacancies. 

When eviction moratoriums are lifted, be ready with additional staff for maintenance and turnover and for the financial impact a higher rate of evictions will have. 

Begin preparing a pool of candidates that will be ready to go when evictions become a reality. Affordable housing PMs, especially, need to make allowances for the additional time required for verification and move-in eligibility processes. 

This is a good time to ramp up your leasing efficiency. Greater reliance on technology has been a rising trend since the pandemic began, because it allows property managers and staff to complete verifications quickly and streamline the entire leasing process for both prospects and your team. The right property management platform also provides a better experience for prospects, giving you a competitive edge in the industry. 

How ResMan Can Help

 ResMan offers a full suite of virtual leasing office components including: 

Payment Plans

Create and track custom resident payment plans within the ResMan property management solution. Most platforms only allow for a 30-day payment plan, but ResMan provides greater flexibility and longer plans to help you capture lost or at-risk revenue and help residents protect their credit. 

Online Leasing

Streamline and accelerate all leasing activities within an intuitive workflow that lets you automate screening, payments and integrated forms, so you fill units faster. 

Online Payments

Reduce friction for applicants and residents and streamline back office processes when you choose a native payments system for receiving, processing and reconciling application, lease and amenity payments. 

Property managers can also consider leveraging our partnership with Sight Plan: a mobile maintenance platform to streamline inspections and work orders for the uptick in turnovers you are sure to see. 

**This is a developing story—watch for deadline extensions and other new information as matters evolve.**