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Underperformance Analysis |
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Individual apartment investors generally face a number of challenges leading to underperformance. More often than not, individual investors are not apartment management professionals, or they have limited time to devote to their investment’s performance. Further, they may lack strategic flexibility due to high debt levels which limit their ability to fund operating deficits or capital improvements.
The primary cause of underperformance in assets owned by individual investors is a failure to execute Performance FundamentalsSM. NOI conducts a de novo financial analysis in comparison to NOI’s benchmarks, to identify site-level problems. We then send our onsite audit team to investigate those problems and all operating functions: management, administration, marketing and leasing, tenant relations, maintenance, the physical plant, and performance reporting.
Upon completion of our analysis, NOI prepares a written, achievable operating plan designed to measurably improve Performance FundamentalsSM. The plan contains specific recommendations with regard to best practices for all operating functions, capital planning, and staffing. NOI forecasts monthly revenue growth, operating expenses, and capital expenditures from implementation through stabilized performance. After the client has reviewed the report, we strongly encourage a web conference or in-person meeting for the client to raise questions, discuss implementation strategies, or challenge our findings.
Following our report to ownership, NOI offers a number of services to assist in executing Performance FundamentalsSM. We may continue to consult regularly with the client to monitor monthly financial progress. We can arrange and supervise a change in property management. NOI may invest opportunity capital to facilitate the recovery, when our skill set will materially improve performance.
At some point, underperforming assets are a problem faced by every investor. NOI provides a performance solution. |
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| Case Studies |
| Underperformance Analysis |
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