THE FACTS: 12/31/2016
- Number of homes: 111
- Date of Acquisition: June 2014
- Purchase Price: US $14.0 Million
- Total Capitalization: US $15.3 Million
- Appraised Value: US $21.6 Million
- Market Rent: US $1,386/home
To add value by improving onsite property management and by implementing a modest renovation program
VALUE ADD PROGRAM:
“Quick hits” for improved curb appeal. Though some of the items below may seem obvious they are overlooked by many companies.
- Picked up trash and ensured dumpster enclosures were neat and tidy.
- Pressure washed walkways, painted curbs and enhanced landscaping.
- Enforced rules to maintain clean uncluttered balconies.
- Ensured all vehicles on the property were registered and road worthy.
Professional management: great customer service that creates a true sense of community.
- Friendly and inviting staff for new and current residents.
- Available for residents during office hours and always answering the phone.
- Professional attire.
- Special resident events.
- Branding the property with a professional website and marketing materials.
- Excellent presentation of vacant homes to improve leasing.
Renovation: modest upgrades to enhance the professional management.
- Completed the 17 un-renovated homes, complete with clothes washers and dryers.
- Professionally updated leasing office. First impressions are everything!
- Freshly painted buildings, including accent colors for added character.
- Transformed an unused pool area in to a pleasant outdoor lounge complete with BBQs, fireplace, games and seating to host resident events.
- Added a huge fenced in dog run. This allowed us to increase the pet rents and fees.
The new look and feel of the community, coupled with superb management and customer service, brought the community to a whole new level within its submarket. In two and a half years, we increased average monthly rents from US $1,007 per home to US $1,386 or 37.6%. And, we’re working to continue to add value.
THE RESULTS: (% Change)
- Market Rent: +37.6%
- Other Income: +94.2%
- Net Operating Income: +55.5%
- Appraised Value: +40.7%