Together with the institution, Property One, Inc. assists in formulating the best strategy by identifying limiting factors, property condition issues, overseeing renovation or repairs, managing current and potential tenants, facilitating necessary audits, and aggressively market the property for highest use while actively limiting owner liability.
The property faced several challenges due to its foreclosure and vacancy status. These included:
Poor property condition: The property had been underutilized and under occupied and areas had suffered from neglect and vandalism. Some units required significant repairs and renovations to make them habitable.
Financial constraints: The cash flow from occupied units had suffered from inconsistent and unengaged management.
Tenant retention: The property had lost many previous tenants, and the property had a poor reputation in the area hindering leasing.
To overcome these challenges, the property management company implemented the following plans:
Inspection and Repairs: Property One conducted a thorough inspection of the property to identify any damages and issues that required repairs. Essential needs to make units habitable, such as fixing plumbing and electrical issues, repairing roofs, and securing the property were prioritized. We also conducted cosmetic repairs to improve the property's appearance, such as painting the units, replacing carpets, and updating the model unit.
Staff Retraining, Marketing and Tenant Screening: We evaluated current staff and repositioned the staffing model to meet the full operational needs of the community. We also put together a marketing plan to attract new tenants.
Cost Optimization: We worked closely with the bank to ensure that they were operating within the financial constraints. We also negotiated with vendors and suppliers to get the best prices for the required services and materials, in many instances rebuilding relationships that had been damaged during the time the complex was in dispute.
The strategies implemented with the careful consultation of the bank yielded positive results. The property was brought to a standard required by fair housing, and presented better to both potential residents and owners. New tenants were attracted, and the vacancy rate decreased by 20% in the six-month period we acted as keeper. The property generated sufficient revenue to cover expenses, and the bank was able to advantageously dispose of the property.