Below are a few stories of some the successes we have enjoyed. Both new clients and long-term clients benefit from our continuous search to improve what we do.
Not every new client will have as dramatic results as some of our clients experienced in the stories below. However, if you wonder whether we can make a difference in your property’s performance, it’s easy to find out.
We will take a thorough look at your property or properties and their performance. We will provide you with a management plan that shows you exactly what we can do, and how we will do it.
For many of our clients, the difference our management company has made has been remarkable. As a result, one thing we can say for certain is this: The way your property is managed matters.
* Click or tap on the titles below to reveal the stories *
Success #1: Small Apartment Complex Increased Actual Annual Collections From $99,946 to $127,020 in a Matter of Months!
Problems we identified when we took over:
- Tenants were poorly screened by the former managers; police were frequently being called to the property.
- Under previous management, rents included utilities that should have been paid by tenants.
- Rents that were set by the previous managers appeared to be below market on several of the apartments.
- At the time we took over, the property looked ragged and neglected.
- Spent less than $1,000 to clean and groom the exterior of the property.
- Prepared a thorough market analysis of rental rates and set a higher rent schedule.
- Renewed only 15% of the leases due to tenant quality.
- We leased the remaining 85% of apartments that we were turning over before departing tenants moved out.
- We billed utilities to the new tenants which had previously been included in the rent.
- Moved all new tenants into their apartments within an average of about four days of the former tenants moving out.
Bottom Line: After only managing the property for approximately 5 months we had leases in place with well-qualified tenants and increased annual revenues from $99,946 to $127,020.
Success #2: Three Bedroom Two Bath Townhome with Two Car Garage:
- The owner had been losing an average of about 11.5% of his annual revenues due to the amount of time the property was vacant between tenants.
- The property still hadn’t been cleaned 3 months after the previous residents vacated.
- Property was not being effectively advertised under previous management.
- Former manager’s leases had not been timed to come due during the rental market peak time.
- We cleaned the property and took care of some minor repairs.
- We created attractive marketing materials and listed the property on our website and advertised with other inexpensive and free sources.
- Changed lease expiration timing to come due during peak market times.
- After we leased the property, we worked diligently to pre-lease it prior to the expiration of the lease to minimize vacancy between residents.
Bottom Line: We leased the property within a week of taking over management and since then it has never been vacant for more than four days between residents.
Success #3: Insurance Claim on 16-Unit Apartment Building:
- The existing roofs on two buildings were old and were reaching the end of their useful lives; they needed to be replaced.
- The owners consulted one contractor, who had given them a bid to replace the roofs and had not suggested the possibility there may be damage that would be covered by insurance.
- We considered the possibility the roofs may have had wind and other weather damage that would be covered by insurance and may not have been detected by the contractor the owners had selected.
- We consulted a contractor we knew who was a former insurance claims adjuster and very astute in the identification of weather-related damage.
- The contractors helped us negotiate a settlement for a full replacement of both roofs.
Bottom Line: With obvious wind damage, shingles are missing or torn. However, wind can cause fastening problems that can be undetected by a visual inspection. Wind can lift unbonded shingles and even debond marginally sealed shingles. When this happens, the wind can cause the shingle to be pulled away from the nail leaving a hole in the shingle. Not only does this diminish the attachment of the shingle it leaves the roof exposed to further damage. The only way to detect this is to have a qualified roofing inspector gently lift along the bottom of the shingles to determine if the shingle is unbonded and determine if the shingle has pulled away from the nail or other fastening device. This is a common occurrence and we have identified several roofs with this type of wind damage and had them replaced with insurance funds. In this case, with a little footwork on our part, we managed to save the owners $45,175.25.
Success #4: 29-Unit Apartment Building:
- Leases were poorly timed.
- Apartments weren’t being marketed until after the previous residents had vacated.
- Lengthy “make-ready” times and a lack of pre-leasing efforts resulted in apartments being vacant for as long as two months.
- We started marketing the apartments for rent as soon as we knew they were going to be vacant.
- If the unit was turning over at a bad time in the rental market, we immediately adjusted the rent to a rate which would cause it to lease quickly.
- We timed all of the leases to come due at the peak of the rental market.
- Maintenance work was scheduled to start as soon as a tenant vacated, so that the new tenant could move into the unit in a matter of days, not weeks.
Bottom Line:During the first year we increased the net income by over $10,000 without raising rents, just by quickly filling vacancies and reducing make-ready times. The next year, with the leases timed to come due at the peak of the market, we were able to increase the rents enough to add nearly another $10,000 to the net income.
Success #5: Property Taxes Disputed on 20-Unit Apartment Building:
- The County Assessor’s system of determining value allows for a number of arguments in addition to comparable sales, leaving the valuations subject to negotiation, if not manipulation.
- In addition to direct comparison of sales, we present arguments related to rents per square foot, gross rents multipliers, apartment mix, age of building, capitalization rates, valuations by the assessor on comparable properties and other arguments. We use as many arguments as we can that are to the advantage of an owner to help to negotiate an assessment that is more favorable.
Bottom Line: On properties we manage, we routinely and successfully dispute the County Assessor’s valuation, reduce the assessed value and save our clients money on their property taxes. In this particular case, we reduced the assessment by $49,900 and reduced the cost of property taxes the owner paid by about $700.00.
Success #6: Cheapest Advertising in the World:
What we hear from new tenants about other companies:
- Many tenants have said the main reason they are moving is because their landlord did not respond promptly to maintenance requests and sometimes didn’t respond at all.
- Many firms are understaffed and it is difficult for tenants to reach anyone in person and are typically routed to voice mail during business hours.
- Other property managers seem to almost treat tenants with contempt and have the attitude that the residents are “just tenants”.
- Our goal is to have maintenance work completed within 48 hours of when we receive the request. Once the work has been completed, we follow up with the residents to make sure that the work was done satisfactorily and that there are no additional issues.
- Our goal is also to reach out to our residents regularly to see how we’re doing and make sure their units are in great shape.
- Our residents can reach a live person any time during business hours and in the case of emergencies can reach someone 24 hours a day, 7 days a week.
- Our technicians and office staff follow a strict “10-foot rule”, meaning that any time they are within 10 feet of a resident they are to greet them and make sure there’s no issues within their unit.
- Our job is to solve problems. Many complaints that residents have can be easily resolved. But in other cases, our goal is to determine the problem and if it is not obvious, establish how to best resolve the issue. Our office manual (which is more than 400 pages) and our ongoing training empowers our staff on the front lines of communication to treat residents respectfully and prevent problems from escalating.
Bottom Line: Good residents are good for your property. Residents that are satisfied with their housing and its management are more likely to renew their leases. This in turn reduces turnover and marketing costs. Satisfied residents are also more likely to tell other people about where they live and about the company from which they lease.
Success #7: Reduced Insurance Premiums:
The advantage we have:
- Because we manage a number of properties, we see insurance invoices from a number of companies for a variety of properties.
- We asked for a quote from one company that not only gave the owner a far better rate, it was also a company that had settled a number of claims satisfactorily for our clients over the years.
Bottom Line: In this particular case, we not only reduced the premium by 31.5%, we were also able to obtained better coverage.