Quarterly Report January 2010
For 4th Quarter 2009

Dear Valued Client,

Beginning now, the new laws enacted by the Oregon Legislature are in effect.   One of the most significant changes concerns 30 day no-cause notices to vacate and carbon monoxide detectors.  The ideas behind the change in no-cause notices are to give tenants reasons/causes for having to move and to make the eviction process longer for the obvious benefit of tenants.  Rather than eliminate no-cause notices all together, 30 day no-cause notices became 60 day no-cause notices provided the tenant has been living in the same place at least one year.  Though there are other provisions affecting the use of these eviction notices, the likely net effect on you as an owner is an increased chance of lost rent in the event we are forced to evict. 

We are holding off implementing the requirement for carbon monoxide (CO) detectors until the state fire Marshall clarifies important issues.  The new laws mandate fire officials to set guidelines as to acceptable types of detectors, in what room or rooms they must be placed and if they must be wall mounted or ceiling mounted.  It would be imprudent to install CO detectors then have to move them or replace them to comply with future, as yet unknown guidelines.  So we will phase-in implementation of the new CO detector law as these sorts of issues are clarified.  In the meantime, if you want us to install these detectors now, we will happy to do so. 

Over the past few months we have done some “market testing” of the monthly statement format we want to use.  The statement QPM has used for years has proven confusing.   In an effort to make your statement easier to understand, you will be receiving a more simplified one page statement.  The test results have been overwhelmingly positive.  Caution:  the new statement will show the tenants security deposit liability as an “amount due” (to the tenant).  You can ignore this, but it is a good reminder of how much money is in the security deposit.

The December cold snap was brutal.  We made it through, but the fix-up from water damage continues.  When the temperature began to drop, we rushed to check vacant houses, shutting off water, checking thermostats, letting sinks drip.  Interestingly, most of the damage and trouble occurred in occupied units rather than un-occupied units.  If you escaped frozen pipe problems this time, please consider having your water pipes insulated or at least inspected to make sure insulated pipes are still protected.  Of the problems with busted pipes, we found exposed gaps in the insulated  pipes which were left by the original installers.   In one instance, a one quarter inch gap in insulation produced an inch of split pipe.  Again, let us know your thoughts.

Vacancy update:  area vacancy for rent-ready units is about 6%.  QPM 4.1%.

Thank you for granting us the privilege to manage your property.
 
Robert S. Rood