By Terri Clifton, Better World Properties, LLC
Texas Apartment Property Management – Case Study
- Claridge Apartments in Houston, Texas
- 173 Units
- Built in 1983
- No irrigation
- One Pool
- Purchased in 2009
Process Review and Assessment
- Completed extensive process review searching for facilities improvement opportunities
- Identified extensive water usage
Apartment Property Management, Water Management
- Immediately implemented RUBS (Ratio Utility Billing System) system for new leases and renewals, increasing revenue to $4,168 per month.
- Upon lease-up, City of Houston water billing averaged $15,644 per month.
- Reduced water costs by 30% in 2011 by installing conservation devices and detecting and repairing leaks.
- Properly maintained systems and with persistent management eventually convinced the City that metering was faulty. After meter change in January of 2014, billing went down by another 43% to an average of $6,199 per month.
- Accumulated savings : $9,445/ mont
- Improved water management (savings + RUBS) adding $163,356/year in NOI.
- Multifamily real estate investment Texas. Rate of return: At sale in 2015, cap rate: 9.64%; these hands-on, management-directed changes added $1,694,564 to the value of the property, or $9,795 per door!