When it comes to apartment investment ROI, there are many tricks in the book to make numbers “appear” more enticing. But when we roll back the covers, do your numbers still stand strong?
There Is No Substitute For Fundamentals
The day in, day out business of managing apartments is not necessarily sexy. But fundamentals are core to long term ROI.
- Lease apartments – Get occupancies up and maintain those numbers
- Expertly manage expenses
- Collect consistent apartment rents
- Raise rents when and where appropriate
That, in a nutshell are fundamentals. When we stray from these, we often can lose sight of the goal of efficient and effective ROI. Great ideas are born in boardrooms. They sometimes don’t play out at the property level. When we consistently focus on core fundamentals, we create a strong foundation for apartment portfolio success. The rest becomes icing on the cake.
There Is No Substitute For Experience
There are some fantastic ideas, excellent products, leading-edge services, but if your demographic won’t pay for them or your property is five years out from transitioning to afford them, apartment ROI can become, “My, oh my.”
When is the timing right to implement upgrades, sell or ladder up or is the timing right at all? This is where there is no substitute for experience. Experienced property management with operational expertise and asset management skills can assess, research, and position a property for its next steps to success.
Trendy new fitness equipment is enticing and can also be a drain on operational budget, yet the competition just got all decked out with a new fitness facility. Do you follow suit? It depends. Does your demographic fit and where you headed? What your competitor is doing may fit them. It may not fit you or your transition plans. Or do you have transition plans?
Partnering with an experienced operational apartment property management firm provides the next level up to add to strong foundational fundamentals. Not only does an operational partner fine tune fundamentals but they can also create an important intermediate and long term growth ladder for your apartment portfolio.
Do I Sell Now or Do I Raise Rents?
Are property taxes rapidly rising? Have your rents peaked for your market? Is it time to sell or is a 1031 B Exchange the right move for tax purposes? Will your residents absorb a rent increase or will it trigger a large shift in your occupancy? An experienced operational apartment property management firm will help you decide the most prudent way to move forward while simultaneously assessing risk.
To increase ROI, an apartment property or apartment portfolio must add value. Manipulating the system, toying with bridge loans, and short changing vendors is not adding value. While these steps move numbers in the interim, somebody eventually has to pay the bills.
New Decade, New Plans
As the apartment market reaches an inflection point, it becomes more important to have fundamentals solidly in place and a clear direction on where you are heading with your apartment properties.
Are you ready to create your plan? At the Better World Family of Companies, we treat your properties as if they were our own. We bring 100+ years of collective apartment industry experience to help our apartment owners and apartment investors to maximize their ROI while being able to enjoy their lives.
Better World Properties LLC, Better World Holdings LLC and Better World Consulting find, analyze, manage, operate, improve processes, uncover hidden value, buy, sell, lease, rehab, finance apartment equity, reposition, and divest apartments. What makes us unique? We do it all under one roof – an incredibly efficient way to manage your apartment investments.
If the start of the new decade has you looking for a breath of fresh air for your apartment properties, accept no substitutes for apartment fundamentals and apartment property management and operational experience.
Give us a call. Better yet, come visit. Bring your boots and we’ll roll up our sleeves and show you fundamentals in action.
Tel: 713-559.6975 or email us at info@BetterWorldLLC.com