Conditions in the multifamily rental market are no longer in rapid decline, but the employment growth to fuel improvement is not underway. There is no leeway for shortcomings in management or operations at the property level.
Peak financial performance is reached by treating an apartment community as a unified system of interrelated functions. The battle is won by making incremental improvements to many details of property operation. NOI Capital Partners focuses, therefore, on continually improving execution of all of the Performance FundamentalsSM—revenue targeting, collection practices, resident retention, control of operating and capital expenses, and performance standards for personnel.
We begin with a candid assessment of the submarket and competitive set. We then create an investor-approved business plan with ambitious—but realistic—financial targets, supported by concrete objectives in administration, leasing, and maintenance. Our goal is to stabilize performance at the financial targets within four to nine months. Along the way, it is crucial to keep close watch on rental conditions and resident turnover, and to respond quickly to observed changes.
We focus completely on driving superior financial results, and therefore are affiliated with a national firm to provide routine property management administration. We and our affiliate work well in institutional settings, meeting even the most stringent reporting requirements.
At NOI, we refer to our goal-driven, proactive management style as "performance management". It can be provided as full-service property management or, alternatively, through our operational supervision of your existing management structure. Performance management encompasses the following:
|
|
•
|
A highly skilled supervisor is assigned to oversee the on-site manager and staff. The supervisor is responsible for a limited number of properties, and conducts regular, thorough site inspections.
|
|
|
•
|
A knowledgeable, service-oriented site team is assembled, performance goals are clearly communicated to them, and rewards for success are put in place.
|
|
|
•
|
Unit rents are custom-tailored with reference to the rental history of individual floor plans and their location within the complex, in light of the property’s occupancy levels overall.
|
|
|
•
|
Vacated units are rapidly brought back into highly competitive condition and put back on the rental market.
|
|
|
•
|
Generous—but well-conceived—marketing, advertising, and incentive plans, together with investment in the appeal of common areas, attract a robust traffic of potential residents and enable above-average success in leasing.
|
|
|
•
|
Lease expirations are carefully managed, to smooth out jagged changes in leasing velocity.
|
|
|
•
|
Consistent background screening of applicants holds down the number of problem tenants, minimizing delinquency and bad debt.
|
|
|
•
|
Ancillary income sources are continually benchmarked, with special attention paid to full and fair allocation of utility costs, as well as ancillary charges payable under the written lease.
|
|
|
•
|
Timely capital expenditures maintain a sound and secure physical plant, reducing tenant complaints.
|
|
|
•
|
Maintenance requests and other tenant problems are rapidly resolved.
|
|
|
•
|
Regular reviews take place to optimize water and utility conservation, utility reimbursements, insurance costs, property tax obligations, income tax depreciation deductions, and the asset’s capital structure.
|
|
|
•
|
Line items of expense are considered in relation to income, other expenses, and internal benchmarks, and cost savings are sought through alternative sourcing and the use of better technologies.
|
Above-average property performance does not result from a great idea or from doing a terrific job in one or two areas of property operation. It results from motivating a capable site team to do a hundred little things well, day after day. The cumulative result is an excellent living environment for tenants, produced cost-effectively, and with greater revenue and profitability.
|
