When times are good, 90% effort still makes money, but when times are tough, it takes 110% just to keep the lights on. Beating the competition in apartment investing consistently requires more effort.
In the recent past when investing in Texas apartment properties, if you just called yourself an apartment manager and captured a decent domain name, you could lease up. When the market is moving the other direction, only the strong and experienced 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.
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.
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 at Better World Properties LLC is working with apartment owners and investors over a long period of time. Together, as part of their advisory team, we assist them in reinvesting profits and graduating to larger, higher-end deals. 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?
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