Multi-Family Asset

Place holder

Project Information

Project Type
Multi-Family

Location
Sarasota, FL

Number of Units
200

Nature of Assignment
Property Management Services

Date of Commencement
September 2009


Results

Within the first 6 Months of Commencement:

  • Decreased Utility expenses by 35%
  • Reduced delinquencies by 75%
  • Increased traffic by over 1500%
  • Stabilized and increased occupancy by 30%
  • Funded repairs and unit turns solely from operations
  • Presented zero capital calls to the owner

Background

On September 1, 2009 TM Realty Services took over property management services without the cooperation of the prior management company. TMRS did a thorough inspection of the property evaluating the condition of all of the units, curb appeal, signage and general operations of the property. Upon initial inspection, the overall property was found to be in subpar condition. Significant deferred maintenance issues were evident, in particular many of the underground pipes were leaking, causing very high utility bills. TMRS identified 3 main areas of focus to improve the performance of the property:

Property Maintenance

TMRS took immediate action to improve the condition and operations of the property. A thorough cleaning of all the common areas and landscaping was performed. TMRS compiled a comprehensive capital improvement budget to address all deferred maintenance and to bring into rentable condition 31 units that were discovered to be severely compromised. A complete repair and maintenance program has also been designed which has reduced utility costs, through aggressive location of leaking pipes, and drastically improved customer service.

Property Management

At the time TMRS took over the property, a large number of tenants were delinquent on their rents and the prior management company did not have a clearly defined tenant screening process. TMRS implemented a new thorough tenant screening process and aggressive collections policy, effectively re-tenanting the property. Over the first 3 months TMRS evicted 21 tenants. The effect was dramatic, whereby delinquencies decreased from 28 units in October 2009 down to an average of 7 units in the first three months of 2010.

Marketing

Upon arrival, TMRS found that the old property brochure was simply a photo copy of the floor plans, advertisements were lacking, and the property signage was hidden from view. A new marketing plan was established which included new brochures, advertising and improved signage visibility. The result was immediate, as evidenced by the significant increase in traffic. In September 2009, there were 8 pieces of traffic, by October that number had increased to 122, and by January 2010 it was 224. Leasing activity improved from 1 executed lease in September 2009 to 31 executed leases in January 2010.