Archive for the ‘Apartment Investing’ Category
Thursday, October 15th, 2009
The Company should be able to provide:
- A summary of tenant rights in the state and municipality
- The first late date
- The notice of eviction date
- Workout guidelines for managers and guidelines should follow credit scores
- Court filing requirements
- Expected time to gain a court date
- A written process that includes checks and balances that will prevent managers giving favors to tenants and will maintain as brief an eviction process as possible
- A written description of the process to turn over uncollected rents to a collection agency
- A selected collection agency with local references
A thorough and prompt eviction process is a significant component of maintaining cash flow. Less obviously, the collections process is an important part of maintaining and improving the quality of the tenant base.
The notice process should also include procedures for calling, knocking on doors, and otherwise assuring the tenants respond immediately to late notices. There is a direct correlation between keeping tenants as nearly current as possible and the collectability of their rents. The further behind lease payments become the more difficult they are to collect.
Posted in Apartment Investing, Apartment Management, Apartment Management Service, Billing and Collections, Operations | No Comments »
Wednesday, October 14th, 2009
In the course of checking my usual blogs, looking at LinkedIn discussions, etc. I continue my quest for contributors and input writing a series of books for multifamily industry operations and investment.
The initial installment will be a bit higher level book designed to help an apartment investor assure that the right resources, the right skills, the right due diligence, and the right plans are in place. Marketing will be touch on more lightly in this book, but future installments will delve more thoroughly into many areas.
If you are interested in helping out in anyway, drop me an email at blake.ratcliff@occupancy100.com
Posted in Apartment Investing, Apartment Management, Apartment Management Service, Apartment Management Services, Apartment Marketing | No Comments »
Monday, October 12th, 2009
The largest metropolitan areas in the U.S. have seen high density renting for sometime. Many communities have taken steps to attempt to manage the issue. However, in the final analysis if cost of living demands it then this will be a reality.
As apartment operators, why should we embrace this trend?
In the industry, we tend consider density related to tenant behavior issues. This association is based on experience and should not be ignored. How do we counter this? Some ideas that stand out include:
- Increased deposits based on density.
- Processes to identify density violations and processes to bring the violating tenants into compliance.
- Processes to better tenant and manage tenants for screening. Perhaps additional charges for added parking needs are a good response. Or, co-signature requirements on leases.
Ignoring the issues is not reasonable, but the economy may have created a new reality that we can’t realistically ignore.
Posted in Apartment Evaluation, Apartment Investing, Apartment Management, Apartment Management Service, Apartment Management Services, Apartment Marketing, Apartment Marketing Ideas, Find Good Tenants, Find Latino Residents, Find Renter, Find Renters, Find a Tenant | 1 Comment »
Saturday, October 3rd, 2009
Today, Bloomberg ran an article that states an expectation of deflationary pressure throughout 2010. The principal driver behind this conclusion is the weakened employment environment throughout the United States. As a results as owners and managers we have to consider how this effects are operations and asset choices.
From a leasing perspective, this is extends the pressure households are under to accept living situations that were not acceptable in the past. Rebuilding America’s wealth means lower fixed cost choices for a large percentage of us. Owners should be considering rental options that will reduce tenants total cost of living decisions. Our affiliated properties have been developing fixed income solutions and solutions to increase the tenant density in our units taking advantage of our generally abundant parking, often good access to public transportation, and other factors supporting this.
From an operations perspective, we must be reviewing our labor costs and assure that we remain competitive. Additionally, as a sector that is likely to recover more quickly in this economy, we may have talent opportunities that don’t often exist. Also, expect and pursue significant reductions in costs for supplies and contract services.
As potential property investors, good deals today must offer extremely strong fundamentals as market conditions may continue to erode property values over the next 24 months. And, for properties already owned, lower leverage is the choice path.
Posted in Apartment Acquisitions, Apartment Evaluation, Apartment Investing, Apartment Management, Apartment Marketing, Apartment Marketing Ideas, Apartment Purchases, Apartment Tenant Qualification, Apartment Website, Finding Good Tenants, Finding Renters, Finding Tenants, Get Good Tenants, Get More Renter Traffic, Get Tenant, Get a Tenant, Getting Good Tenants, Getting Tenants, Help Rent Apartments, Help Renting Apartments, Leasing Management | 1 Comment »
Wednesday, September 2nd, 2009
The short answer many properties are being thrown into default by these changes. Properties meeting LTV, DSCR, and other required metrics are suddenly underwater.
Consider the effects of these changes plus increasing capitalization rates on owners and investors. Projects that made tremendous sense a few months ago now are struggling. Over the coming months many more will face the same issue.
As this situation comes to its full head, properties will sharply reduce expenses in numerous ways cutting repairs and maintenance, staffing, marketing costs, and almost any area they can pursue to push up their value before the appraisal, improve DSCR results, and many more.
Posted in Apartment Investing, Apartment Management Service, Apartment Management Services, Apartment Marketing Support, Property Management Service, Property Management Services, Property Management Solution, Property Management Solutions | No Comments »
Monday, August 31st, 2009
In my years in business management, I have noticed one reliable factor that we can count on. Emulating the best is a great way to become the best. This shouldn’t be much of a surprise as we see the same fact demonstrate in sports over and over again.
As apartment managers, operators, and owners this is a huge key factor. Study the best… be the best…
Keeping the books in exemplary condition…
Ensuring late paying tenants… create immediate notices… create evictions…
Management of maintenance calls…
Posted in Apartment Investing, Apartment Management Service, Apartment Management Services, Apartment Marketing, Tenant Acquisition | No Comments »
Monday, August 31st, 2009
I found this list posted by Primemedia on LinkedIn today and thought that this could be useful.
The apartment features and community amenities consumers searched most often for on ApartmentGuide.com over the last six months include (in order):
1. Washer and Dryer In Unit
2. Pets (allowed)
3. Air Conditioning
4. Some Paid Utilities
5. Washer and Dryer Connections
6. Dishwasher
7. Balcony
8. Garage
9. Cable Ready
10. Furnished Available
11. Swimming Pool
12. Short Term Lease Available
13. Fitness Center
14. Gated Access
15. Oversized Closet
Good luck and good renting.
Posted in Apartment Investing, Apartment Management Services, Apartment Marketing, Apartment Marketing Ideas, Apartment Marketing Support, Apartment Tenant Qualification, Find Good Tenants, Get More Renter Traffic, Tenant Acquisition | 2 Comments »
Sunday, August 30th, 2009
The responsibility of renting a property is critical, but simply generating traffic and having a trained sales staff will not rent units. We are operators in a commodity market. By definition, this implies that as owners and managers we have to provide some basic underlying conditions to rent.
First on the list, as operators we gain nothing by trying to sharply under price the market and if we over price the market, we will not rent. This is a delicate item because if we price too low we lose money and if we price too high we will not rent at all. Further, this means we have to be competitive on concessions as well as basic price. With all this in place, if as owners and operators, we can establish a position of greater value we will have a sustainable edge in the market.
Next, our property must be priced to compete with properties on amenities. Visits and calls are generally determined by bedrooms, bathrooms, and amenities. Pricing to fit against the competition in this area is critical.
A clean well maintained property is another basic point. Property management processes and procedures that assure this are critical to renting units. As always, customer service wins the day.
Finally, social condition will kill renting and can be a great rent enabler. If resident prospects see a clean area, late model vehicles, quiet and low key resident interactions, etc. Residents and resident prospects need to feel safe in the neighborhood. The probability begin increasing quickly that they will choose your community as their new home if safe, clean, and friendly conditions.
Blake Ratcliff – The apartment marketing guy
Posted in Apartment Investing, Apartment Management Service, Apartment Management Services, Apartment Marketing, Apartment Marketing Ideas, Apartment Marketing Support, Apartment Tenant Qualification, Find Good Tenants, Find Latino Residents, Find Renter, Find Renters, Find Tenant, Find a Tenant, Finding Good Tenants, Finding Renters, Finding Tenants, Get More Renter Traffic, Get More Renters, Getting Good Tenants, Getting Tenants, Help Rent Apartments, Help Renting Apartments, Hispanic Market, Hispanic Tenant Finding, How to Find Renters, Increase Apartment Occupancy, Increasing Apartment Occupancy, Marketing Apartment, Marketing Apartments, Multi-family Renting, Obtain More Leases, Obtain More Renters, Receive More Renter Traffic, Receive More Renters, Tenant Acquisition | No Comments »
Thursday, August 27th, 2009
Check out this link for hints regarding capitalization rates. Capitalization rates are considered the best measure of year’s income and the relative value of a property.
Posted in Apartment Investing, Apartment Management Service, Tenant Acquisition | No Comments »
Monday, August 24th, 2009
We’ve hit many times the fact that Hispanics are the fastest growing resident demographic. However, did you know that Hispanic Internet usage is growing 50% faster than the general market? Do you have a strategy for this market area?
If not, keep in mind that most Hispanic searches are in English. The fact is Hispanic marketing in fact any demographic marketing focus is a cultural item. For example are you aware that a Hispanic household is 3.5X more likely to respond to a direct mail item than a non-Hispanic Household. This is particularly important when you understand that they only receive 10% of the mail other households receive.
About 55% of Hispanics respond well to ads in Spanish. Also, Radio and television is generally the best mode of advertising based on selling results.
When you considers Hispanics are $860 billion dollar market segment, ignoring this segment is at your own risk. This will be an even greater fact as the segment is expected to grow to over $1 trillion by early in the coming decade.
Good sources for this post were:
MK Blog
The Latino Journal
Online Hispanic Trends
Posted in Apartment Investing, Apartment Management Service, Apartment Management Services, Apartment Marketing, Apartment Marketing Ideas, Apartment Marketing Support, Apartment Tenant Qualification, Find Good Tenants, Find Latino Residents, Find Renter, Find Renters, Find Tenant, Find a Tenant, Finding Good Tenants, Finding Renters, Finding Tenants, Get Good Tenants, Get More Renter Traffic, Get More Renters, Get More Tenants, Get Tenant, Get a Tenant, Getting Good Tenants, Getting Tenants, Help Rent Apartments, Help Renting Apartments, Hispanic Market, Hispanic Tenant Finding, Housing Demographics, Housing Market Facts, How to Find Renters, Increase Apartment Occupancy, Increasing Apartment Occupancy, Latino Prospects, Latino Renteres, Latino Renters, Leasing Support, Marketing Apartment, Marketing Apartments, Multi-family Renting, Obtain More Leases, Obtain More Renters, Obtain More Tenants, Online Property Management, Online Rental Application, Property Management, Property Management Service, Property Management Services, Property Management Solution, Property Management Solutions, Receive More Renter Traffic, Receive More Renters, Receive More Tenants, Tenant Acquisition, Tenant Finding, Tenant Getting, Tenant Placement Service, Tenant Placement Services, Tenant Screening, U.S. Housing | 3 Comments »
