APARTMENT BUILDING MANAGEMENT APPROACHES
The firm uses the background of its owner in real estate, accounting, architecture and construction in order to develop cost effective management strategies for the properties under its control. The following is a summary of some of the techniques it uses in order to maximize rent revenue, minimize operating costs and procure value-added capital improvements:
Acquisitions:
- Identify buildings and locations which have high probability of future rent increases, low vacancy rates and opportunities for physical upgrades
- Employ acquisition financing approaches which will support future value enhancements
Operations:
- Use energy and water cost control strategies
- Apply for property tax reduction
- Minimize repair and maintenance costs with effective labor and procurement approaches
- Use insurance master multiple building policies to minimize insurance costs
Leasing:
- Initiate showing of apartments one month before lease expiration to minimize vacancies
- Qualify tenants using credit reports, verification of income and landlord references to minimize eviction costs
- Use internet and tenant agencies to advertise available units
- Use interactive website to advertise location, features, plans and showing schedules of available apartments
- Use floor plans and high quality photographs for advertising available apartments
- Maintain an inventory of furniture and accessories to use when showing available vacant apartments
- Obtain periodic legal review of leases to maximize owners’ rights
- Provide lease signing incentives, when needed
Repairs and Maintenance:
- Maintain a staff of in-house employees to undertake leasing, repairs, and janitorial work
- Provide each field employee with means for efficient and direct contact with tenants
- Create negotiated rate relationships with vendors for services not provided by staff
- Buy supplies in bulk on an annual basis for all properties
Capital Improvements:
- Prepare designs which increase the value of the property such as the following:
. Converting large studios to one bedroom units or large one bedroom units into two bedroom units
. Adding leasable space to existing underutilized ground floor space
. Adding leasable space by adding a floor or horizontal addition
. Adding second bathrooms to large units with only one bathroom - Prepare a cost benefit analysis to determine if the value added by a capital improvement exceeds the cost of constructing the improvement
- Construct improvements using competitive bidding or cost-plus-fixed fee contracting
Financing:
- Monitor loan characteristics to ensure that cost-effective financing is placed on the property
- Assist in indentifying and evaluating new loan options