MERIDIAN’S HARD WATER AND HYDRONIC COIL FURNACES

We’re all aware of Meridian’s notoriously hard water; you wash a glass and two seconds later it has a film on it. Now, think about what that hard water is doing inside a Hydronic coil furnace that has water in it constantly. We’ve had several units that have had the coil literally burst and flood apartments. While there is nothing to be done about the water quality, we can offer some tips for helping to avoid a complete disaster.

First and foremost the filter in the unit must be changed on a regular basis and replaced with a clean one. Restricted airflow can cause the evaporative coil to freeze up, which in turn can potentially cause the Hydronic coil to freeze and burst.

Second, we can have Freeze Protection Stats installed for a small cost. These are installed inside the unit on the coil and wired to the A/C. The purpose of the Stats is to shut the A/C off if the Hydronic coil temperature reaches 35 degrees. This will decrease the chances of the coil bursting.

Lastly, for a higher cost, we can have a Safety Water Shut-Off System installed. These are 24 volt controlled shut-off solenoids installed at both the supply and return water lines. The solenoids are connected to a “Wet Switch” safety that is activated by the presence of moisture. The wet switch, when activated, will shut down the HVAC equipment as well as the water supply lines to the Hydronic air handler. This system will not completely do away with, but will substantially decrease water damage caused by Hydronic coil failure due to pressure or corrosive issues.

For pricing and additional information please contact

Dave Cole

A+ Energy Management LLC
P - 208-484-2907
F - 208-562-1845

Summer Is Here!

Tenant Turnover to Increase

In the past, I have described the seasonal cycle that we tend to see in the rental market. Typically the slowest month is December and January. Things then pick up each month from February thru May, with an explosion in June and July. Then in August it starts to slow down each month until we are at a crawl again around Thanksgiving. Depending on when school ends, our busiest months for the entire year are either June or July. Based on our notices to vacate for July move-outs, we will turnover 8% of our inventory in July. We closed May out with a 3.8% vacancy and pre-leased over 70% of our listing. We’ve also been increasing rents where possible. I’d still like to see the rents increased higher as they did take quite a dip in 2009, but I’m happy with the upward trend I am seeing.

Summertime is Busy

Summer is upon us. I think I say this each year and I forget how busy it gets until it hits. For example, we hold staff meetings every Wednesday from 9am to 11am. When I returned from our staff meeting this morning, I had missed 18 calls and had 13 voicemails. I also received 38 emails during that time. Every time I got on the phone to return a message, I’d hang up the phone and discover new and more voicemails. We’ve increased our staffing to help, but it is what it is and we just suffer through it for 3 months. Just so you know, I have already fielded several calls from tenants stating that they can’t get through. It’s true, at certain times of the day, we are all on the phone one call after the next. Both of the complaints were from callers who didn’t leave a message. If they leave a message, the call is to be returned by the end of the business day. We also add a swing shift in the summer too. That helps with showings and after hours inquiries.

Sales Market

I almost always comment about the multi-family sales market, but that’s not because I don’t follow what is happening residentially, it’s just that I’m much more entrenched with the income properties. With so many 4 plexes coming to the market as bank owned properties and short sales, this market has exploded. Prices are outstanding. Also, I received a rate quote from my lender at 5.125% with a 1% loan origination fee and .75% loan discount fee. Considering the prices and those kinds of loan terms, that’s a pretty good combination. So yes, I am still finding the biggest bang for your buck to be 4 plexes. I don’t know a lot about stocks, but what comes to mind right now is the stock broker in the movies calling everyone telling them to “buy, buy, buy”. I think we’re there.

Travels

Next week I take a two day Continuing Education Class. The following week I’m in Seattle, WA for NARPM Board meetings, and then the last week of the month I will be in a week long CCIM, which stands for Certified Commercial Investment Manager. Yes, I am working on another designation, although this one will take a little longer has the classes are a week long and for me to find a week that I don’t have other commitments has been fairly difficult.