Tales From a Part-time Politico

Tales From a Part-time Politico: 2012 Capitol Conference Recap

BY: Nicholas A. Dunlap, CPM

 *As published in the May 2012 Edition of Apartment News Magazine*

As you know, your AAOC membership provides you with a wealth of benefits and resources.  While some of these resources are more easily quantified & include the updated forms, credit checking, educational training & timely informational updates that you have access to, some of the most important work that is done to protect our industry is done behind the scenes and is accomplished through dedicated & effective legislative advocacy programs at the State & Federal levels. 

Through our partnership with the National Apartment Association, we recently participated in the joint efforts of the National Apartment Association (NAA) and the National Multi-housing Council (NMHC) at the 2012 Capitol Conference in Washington, D.C.  Visiting Washington, D.C. allowed us to meet with our elected officials and their staff to address some of the key issues that are facing apartment owners & operators at present.  On the agenda at Capitol Conference were items such as: tax reform, loosening of lending requirements with regard to FHA financing in the multifamily sector, continued dialogue with the EPA regarding storm water recapture, improving the Section 8 Voucher program, and yes, even the first ever "bed bug" bill. 

While it was beneficial to meet with and advise officials on how these issues will affect our industry, the true value of the visit is recognized through our ability to continually strengthen our relationships with these officials and provide them with the grass roots, hometown reference point into these issues at the national level.  With their busy schedules and multiple commitments, it can be easy for our elected officials to lose track of how key issues affect their constituents.  But through effective communication and dialogue, we carefully craft the portrait of our membership base and engage the support of our Senators & Congressmen in protecting our interests.   

Aside from our meetings with politicians, we attended upwards of 6 seminars & committee meetings per day, communicating with apartment owners & operators of all sizes & from all over the United States to share insight into our industry and to identify & be aware of the issues, rules and regulations that others are facing and could potentially come to California.  This being an election year, it is unlikely that these issues will become part of or be turned into bills that are voted on before November.  Look for many of the issues to surface in 2013.  At that time, please be sure to look out for our legislative updates and red alerts from AAOC.  You, too, play an integral part in the legislative process and help us provide the "feet on the street" that are necessary to defeat nuisance bills and legislation.  

So while our economic forecast has improved slightly, this could be the proverbial calm before the storm as far as legislative affairs is concerned.  Stay tuned for an update on our State specific Legislative affairs.

From Manager to Managing Partner

From Manager to Managing Partner

Click the link to see highlights from my recent keynote presentation at the IREM LLS Conference in Washington, DC.  The event was a quick, entertaining and enriching look at how professionals in the asset/property management industry can transition into earning equity interest in assets through leveraging their professional relationships and expertise.  

Ten Most Trusted Brands...Banks Nowhere to Be Found

Ten Most Trusted Brands...Banks Nowhere to Be Found

While reading the paper over the weekend, I noticed a top ten list published that highlighted the top ten most trusted brand names in America. The list included: Ford, Starbucks, Nordstrom, Nike, Apple, Amazon, Ford, Coca Cola, Southwest Airlines, Target & Fed Ex. For the most part, I can understand or agree with the list. That is, with the exception of Southwest Airlines. I have flown on Southwest Airlines 5 times in my life and the plane has been over an hour late twice, the flight has been cancelled once and the other time was a miserable flight home from Las Vegas with no air conditioning on the plane. Needless to say, I'll continue to avoid them regardless of their top ten placement.

But back to my point and that is: of the top ten businesses highlighted on the list we have a number of service, technology or retail businesses, travel, transportation and even the hospitality or food industry. There are businesses from all over the spectrum, except for the one area that makes it all possible and that is: the banking industry. We all put our money in, keep it there, invest it, rely on these institutions for their assistance and yet not one of the big four made the cut in spite of all of their technological advances. So why did they not make the grade? Well, that is the easy part. Essentially, there is a laundry list a block and a half long filled with complaints over dishonest, unethical and other greedy, unsavory business practices that find their way to light.

Not to sound like 99%'er, but really, the banking industry has gotten out of hand with their fees and their business practices. If Progressive Insurance is known for the "Discount Button", the banking industry is known for "pay up" button, wherein you ask for something and immediately get drilled with a charge. Almost like the old cartoon I mean just to refinance an apartment building requires paperwork after redundant, I've already told you this and signed a form and yet you ask me to do it two or three times over-paperwork. Enough is enough. I don't blame Wall Street or Financial Institutions for people trying to live above their means and suffering the consequences through foreclosure, but I blame Wall Street for ruining the reputation of the finance industry in America by simply ignoring and abandoning what it is to provide quality customer service and solutions to those who need it the most: their customers.

Let's hope that on the next top 10 list, a financial institution can make the grade.

Reality Strikes For Realtors

Reality Strikes For Realtors.

One of the newer trends in reality television is the showcasing of behind the scenes interactions between real estate agents and their clientele. Whether working with buyers or sellers, several shows on Bravo & HGTV highlight the glamorous side of marketing and selling (in some cases) high-end, luxury real estate. As someone working full-time in the real estate industry for as long as I can remember, I certainly know what it is like to be on both the principal side and the agent side, the buyer side and the seller side. I find it interesting to follow some of the stereotypes or stigmas that either are incorrect, inaccurate, or in some cases spot on about real estate professionals.

First off, there exists the idea that real estate agents who are paid on a commission based on the sales price of the house are overpaid. As seen in both shows, agents often tour dozens of houses, spend thousands of dollars on marketing a property and in the end do not make the sale and are thus not compensated for the time. Simply put, this comes with the territory in real estate. If anything, as one matures in their career they grow more astute at spotting potentially time wasting clients.

Some of the Realtors who are featured on these shows appear to be more beauty than brains and do not have much to offer in terms of strategy or expertise other than simply showing up and looking good. This too, has lead some to feel that the real estate profession is one centered around vanity and other shallow personality traits. Thus, some of the other stereotypes such as: unprofessional, dishonest, out for a buck and a cutthroat personality can be seen and experienced firsthand.

If anything, what these shows do illustrate is that as with any field or any profession, there are stereotypes that exist and quite possibly for a good reason. But just like in life, it is important to approach each situation with a clear and open mind, as opposed to judging someone by the actions of their colleagues.

Highlights From the Recent AAOC Rental Outlook

Highlights From the Recent AAOC Rental Outlook

Recently, I was on a panel at the Apartment Association of Orange County's trade show in which we discussed market activity, outlook and other things related to investing and operating income producing real estate. You can read the write up in the Orange County Register by clicking here.