Condo Conversion

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Project Information

Project Type
Condo Conversion

Location
Las Vegas, Nevada

Number of Units
230 available for rent

Nature of Assignment
Asset Management and Property Management

Date of Commencement
January 2009


Results

  • Increased occupancy by 18% from April 2009 to February 2010
  • Increased percentage of total units paying current by 21% from April 2009 to February 2010
  • By controlling the HOA board, TMRS has saved the bank legal fees (bank would have to foreclose to protect its rights) by convincing the HOA to not foreclose on the Declarant owned units.
  • Successful in reducing real estate taxes by $88,610 in 2008-2009 and $78,560 in 2009-2010
  • Through governance of the HOA, TMRS was able to force separation of the overall insurance policies resulting in a $21,000 annual savings to the Declarant for the unsold units.

Background

TMRS has been involved in the asset management, construction and sales of this project since 2007, but only began the physical management of the leasing operations in January 2009. At the time TMRS took over the management responsibilities, the community was at an 81% physical occupancy with 187 occupied units and 16 down, un-rentable units. In the months of February and March 2009 the overall employment market in Las Vegas suffered substantial job losses resulting in a nearly 5% jump in unemployment which trickled down to a reduction of 6% in physical occupancy and a nearly 12% decrease in net rents. Additional marketing was set in place and physical occupancy has steadily risen since 1st quarter 2009 to 83%, 190 units at month end January. TMRS has represented both the Declarant and the lender as members of the Board of Directors for the Homeowner’s Association since its implementation in April 2008 and has been instrumental in ensuring that this Association has remained solvent and that its day to day operations have stayed within the realms of the governing documents and policies.

Property Maintenance

TMRS took a proactive stance with regard to the day to day management of both the 230 Declarant owned units as well as the management and maintenance of the common areas governed by the Homeowner’s Association. Daily communications and assistance is provided to the HOA in efforts to maintain the overall maintenance of the community. This partnership is evident in the overall appearance of the asset which benefits both the homeowner’s and leasing operations as a whole. Approval was given in February 2010 to begin readying the 16 down, un-rentable units which had previously been partially renovated for sale. All units were put back in to rentable condition within the first 30 days of oversight. The 230 Declarant owned units are professionally maintained by on-site staff and have suffered no deferred maintenance since TMRS took over operations.

Property Management

Several impacting issues have occurred since TMRS took over the management of the leasing operations of the asset. These have been primarily related to increases in job losses and reduction in resident income. TMRS reviews leasing operations weekly and compares those operations to surveys of competing communities and adjustments are made were felt necessary. This has offered the community the ability to maintain the level of physical occupancy it has realized despite its remote location and the overall stigma of being a partially sold condominium community.