When times are good, 90% effort still makes money, but when times are tough, it takes 110% effort just to keep the lights on. Accelerating growth in apartment investing consistently requires focused effort. Read on to learn more on how to ladder your apartment portfolio for future success and go the extra mile.
In the recent past when investing in Texas apartment properties, if you just called yourself an apartment property manager and captured a decent domain name, you could lease up apartment properties. When the market is moving the other direction, only the strong and experienced owners and properties managers survive.
In the 1980’s, one could blame the credit crisis. In 2008, the economy was to blame. But any way you slice it, every property must reach economic occupancy to survive in all economies. Economic occupancy refers to the rate of paying residents in an apartment community or apartment portfolio. Physical occupancy means how many residents are renting apartment units. The rate of economic occupancy refers to how many residents are actually paying rent.
Those that figured out how to fight for occupancy and survive in those turbulent times are the ones succeeding today. As the business climates, lending climates, demographics, and resident wish lists change, so must successful apartment management. Those with their pulse on all of these moving parts will be the ones standing when the dust settles.
One succeeds in the longer term by continuous monitoring of market trends, understanding the unique clientele in each sub-market, and providing a better level of service with a personalized touch of care not only with residents but also to apartment investors and owners. People like to do with business with people they like. And, they especially like to do business with people who get results.
Your ROI Can Get Left Behind
But, even past experience is often not enough. We constantly have to adapt and innovate; otherwise, there is a risk of being just being one of the crowd. Today, properties must be digitally adept, and optimized with meaningful amenities and services to match the level of asset class, or your property and your ROI will get left behind.
Challenged apartment properties are where the bold go, and also where the best lessons are learned. There is far less risk trying out new ideas at a smaller, older, Class-B or C apartment property, than trying novel concepts at a new Class A+ high-rise apartment building. When decisions are made by veteran entrepreneurs with decades of experience instead of a room full of suits with unproven theories, creative ideas that work are more likely to be explored, discovered and successfully implemented. Those new ideas are born from the experienced vision earned from years in the trenches. Experienced vision that can correctly identify and extract the gold in apartment process improvement, multifamily financing solutions and apartment property management.
The most successful multifamily managers and owners are able to translate these hard-won lessons to higher-end properties when there is much more on the line. Only now, there is much less guessing because the ideas have been time-tested and proven with much less risk.
One of our greatest pleasures that we have at Better World Properties LLC is working with Texas apartment owners, REITs and apartment investors over a long period of time and helping to grow their holdings. Together, as part of their operational partner, we assist them in reinvesting profits and graduating to larger, higher-end deals with a focus on Texas apartment properties. We often become part of the family. But, that’s just how we do business here in Texas. And, that is why we love the apartment business.
Are You Ready to Step It Up a Notch in Your Apartment Portfolio?
apartment owners and investors including apartment property management, apartment performance consulting, multifamily deal generation, closing and financing. To learn more about the Better World Family of Companies services click here .
Would you like assistance with acquisition or disposition strategies, apartment process improvement and learn new ways to grow and stair step your apartment portfolio? If so, please give us a call. Better yet, come visit. We love to talk apartments.