Core strategies. Those field tested operational procedures that have withstood the test of time. When an apartment property or an apartment property owner no longer fits these core strategies, do you burn the bridge or lead the way for productive change? Read on more insight.
Whispers of Unrest
If an apartment property is consistently under performing, it may be time to assess whether core strategies are being met. If ownership does not want to invest in upgrades or repositioning efforts yet still demands performance equal to peer properties that are investing and upgrading, we face an uphill battle.
Lipstick on a Pig
We can put lipstick on a pig, but it’s still just a pretty pig. If we want to make a better world for apartment owners, apartment investors and apartment residents, we must adhere to proven core investment and property management strategies that rely on years of experience and have been proven over time.
When we stick to the numbers, strategies work, ROI is improved and a property hums along. When we let emotions get in the way and extend too many favors, we stray from core investment principles and things start to wobble.
Managing apartment properties at a greatly reduced fee, operating on a shoestring budget or worse yet, a wing and a prayer, does not create sustainable ROI. To consistently deliver quality apartment property management, we must stick to core strategies.
When to Walk Away
Knowing when to walk away can be one our greatest skills. When conducting due diligence on a potential apartment asset, numbers are king. Walk sheets and performance analyses tell the true story. Regardless of the enthusiasm of the buyer or the seller, we must stick to proven formulas that work and utilize decades of experience that come with a seasoned apartment property management company.
When we let emotions drive a purchase, we can overpay and be blindsided by potential risk in a rush to simply secure a deal. Sometimes, the best investment is to simply walk away.
When an apartment property or multifamily portfolio no longer fits proven investment strategies, prudent property management will advocate for change. Change can include investing in upgrades, hiring more staff, marketing to a new resident mix, positioning for sale or deciding to part ways if resolutions cannot be found. All are acceptable strategies.
Agents For Change
Professional property management does not jeopardize ROI and resident satisfaction simply to meet unreasonable projections. It may simply be time to move forward with new strategies. Bridge loans, refinancing options, and other growth strategies can be creative tools for change.
If these do not solve the dilemma, then it may be time to move on. If this is the case, burning bridges is not warranted. A smooth transition to the next manager is how we make it a better world. Be the change you seek. When we level up, everyone around us is also encouraged to level up.
Leave Doors Open
Leave doors open. Don’t burn bridges. That’s just how we roll in Texas. Because one day, we may meet again and when we do, we do it with a smile and a desire to continue to make it a better world.
If you are looking for core apartment investment strategies, experienced apartment due diligence and multifamily financing solutions, feel free to give us a call. We have 100+ years of collective apartment management experience – all under one roof.
You can read more at this link about Better World Properties and Better World Holdings and how we add value to your apartment portfolio performance.