So you have just invested in your Multifamily complex. Be it sixplex to 20 units to 50 units to hundreds of units. Now what? Well very likely you invested to make some money. Ideally make money and provide a great environment for your residence and your staff. If those are your goals here are some basic rules.
1) Run the apartments like a business. Which means know your numbers, and take care of your customers.
2) Look for places of waste, which include everything from theft to water leaks to wasted heat or air conditioning.
3) Look for every opportunity to create value and add revenue.
4) Protect your asset by insuring that repairs are done on a timely basis.
Assuming you have more than 20 units here are some other things you must do:
1) have a budget for the up coming year minimum and ideally for the next 3 – 5 years. This budget should cover revenue, expenses and capital expenses.
2) measure your performance and cash flow against the budget both on P&L and on Trailing 12 months.
3) hire awesome Apartment Manager and Maintenance staff. These people should have a clear idea of how to treat your customers, covering everything from cash collection to timeliness of customer work orders.
4) once a month walk the property this visit should include:
a) inspect all empty suites to ensure they are indeed empty, and what stage of make ready the suites are in
b) check the inventory of all supplies in particular paints, freon, pool chemicals, etc. Also ensure these products are put away properly each day
c) check the curb appeal, lawns, gardens, signage
5) review the marketing are we visible and advertising in the right places? What’s the inquiry count? Show up? Lease rate? Acceptance rates?
These simple tasks will make your aware of your business show your staff and customers you care about your business and most of all keep you in tune with your business.
Remember Real Estate can be a really rewarding business BUT if you don’t love what you do DON’T DO IT!!! There are lot’s of ways to make money…so be sure to chose something you can enjoy!!!