Multifamily brokers inevitably encounter clients whose assets are not positioned for sale at the desired price. NOI Capital Partners specializes in managing those properties up to market potential. Furthermore, we always seek opportunities to invest or co-invest capital that may be required. We offer brokers a powerful resource to increase the number of properties successfully brought to market, and can provide local Texas references to vouch for it.
NOI’s principals have a reputation for solving performance problems regardless of asset class, submarket type, or location. We can integrate our supervision with in-place management, or we can replace them. In all engagements, we focus on strong execution of Performance FundamentalsSM.
Raising a weak performer to market potential takes five to nine months of intensive effort. We specialize in problem properties, so naturally we have greater experience and specific expertise with them.
Our services and the timetable for success are described below:
First 30-45 Days
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Assignment to the property of a highly skilled supervisor/team leader, who will be a constant presence on-site to inspect progress.
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Analysis of submarket, competitive set, financial statements, debt structure, all property operating functions, current on-site personnel, and physical plant.
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Preparation of a comprehensive, written, business plan, setting forth monthly line-item targets for revenue, operating expense, and capital expenditure, and culminating in acceptable, stabilized NOI.
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Approval of the business plan by the investor, and delegation to NOI Capital Partners of broad authority and power to execute the plan.
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Establishment of close coordination with the investor to facilitate rapid decision making and problem solving.
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Assessment of on-site personnel, with replacement as needed, to create an ambitious, service-oriented team under NOI’s supervisor/team leader; orientation of staff to the business mission, to changes in operating protocols, and to job-performance expectations and rewards.
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Rent-roll, lease, and delinquency audits.
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Next 90-120 Days
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As required, repair and improvement of physical plant systems, aesthetic enhancement of common areas, and capital upgrades to vacant units, assuring the rent-readiness of highly competitive product and an appealing living environment.
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Short-term "over-promotion" of available units with a full arsenal of marketing, advertising, and leasing initiatives, to develop a robust traffic of potential tenants; continuous monitoring to inform real-time adjustment of rental rates, leasing concessions, and advertising/marketing programs.
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Implementation of diligent applicant screening, to hold down the number of problem tenants, and minimize delinquency and bad debt.
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Implementation of continual benchmarking of ancillary income sources, full and fair allocation of utility charges, and consistent collection of ancillary charges payable under the written lease.
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Careful documenting and prompt resolution of tenant problems, with special focus on maintenance and security issues.
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Initiatives to review and optimize water conservation, utility reimbursements, insurance costs, property tax obligations, income tax depreciation deductions, and the asset’s capital structure.
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Planning and budgeting of recurring capital expenditures, with an eye to patterns in maintenance problems.
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Review of individual operating expenses in relation to NOI’s internal benchmarks and ultimate impact on the bottom line, and continual efforts to find cost savings through alternative sourcing and the use of better technologies.
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Ongoing performance review of personnel, and adjustment of staff as required.
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Final 30-120 Days
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As occupancy rises, fine-tuning of rental rates, concessions, and capital-improvement outlays enhances the rent roll.
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Monitoring and refinement of marketing, advertising, and leasing strategies, and tighter control of related expenses.
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Systematic, continuous benchmarking of delinquency, bad debt, handling of maintenance requests, tenant retention, and related measurements.
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Fine-tuning of recurring capital expenditure plans and budgets.
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Monitoring and refinement of cost-saving efforts.
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Peak financial performance is reached by treating an apartment community as a unified system of interrelated functions. The battle is won by incremental improvements to many details of property operation. Those improvements mutually reinforce each other to create an excellent living environment for tenants, produced cost effectively, and with greater revenue and profitability. NOI Capital Partners succeeds with a formula that is simple, but not easy.
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