Feb 23, 2017
A professional property management company can make or break
your profitability and overall success to your apartment
investment. Find a management group you can trust. A property
management company should treat their clients money as their
own.
Craig Lashley & Todd Parks are with SIMC Property Management. SIMC
is a third party property management company that manages over 7500
apartment units. SIMC focuses on properties with a minimum size of
200+ unit apartments. SIMC likes to find employees outside of the
apartment industry to join their team.
Property Management companies should have a few different
divisions.
Example: 1) accounting, 2) human resources, 3) construction &
rehab
ACCOUNTING- is responsible for receiving rental income, paying the
expenses and then delivering monthly financial statements to the
ownership group. They are also responsible for lender communication
for construction draws on rehab and the capital replacement
reserves.
HUMAN RESOURCES- HR overseas the onsite property manager, assistant
manager, leasing agent, maintenance manager, assistant manager &
porter.
CONSTRUCTION- Your property management company needs to improve and
update your property. They execute your vision. Having an internal
construction group controlled by the property management company
can be cheaper and more consistent than hiring an outside crew. A
large property management company can buy in bulk and import
fixtures, flooring and low flow toilets directly from overseas,
thus saving huge costs.
TIPS: When you put a property under contract to buy, make sure that
seller does not take their eye off the ball before the property
changes hands. If occupancy or NOI fall, your lender may have to
reduce your loan dollars. Maximize your rental revenue with LRO.
Hotels and airlines use it to get the highest price in the market.
Find out if you can use rental optimization for your building.
Huge amenity push in apartments to capture new tenants. Craig likes
a ’24 hour-package room’ for boxes delivered by Amazon or UPS.
Valet Trash is a great low cost amenity for tenants that will help
your bottom line. Todd uses Facebook Messenger to communicate with
potential tenants.
GOOD ADVICE: As an owner, don’t get in the middle between the
management company and the on-site employee…or you could get fired.
Let them do what they do (operate the building)…and you do what you
do. (find the next building to purchase and raise the equity)
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INFO@OldCapitalLending.com
Interested in learning more about how Multifamily Financing and
connecting with Michael Becker and Paul Peebles. Contact:
MBecker@spiadvisory.com or PPeebles@oldcapitallending.com
Are you interested in learning more about how Multifamily
Syndications work? Please visit www.spiadvisory.com to learn about
Michael's Real Estate Syndication business with SPI Advisory
LLC