The 5 C’s of Management

Curb Appeal

Curb appeal typically refers to the exterior components of a property. From our perspective operationally speaking we carry the thought of curb appeal throughout our interiors as well. We believe in providing all our residents with clean, cute and comfortable surroundings. This starts with the drive up on entry and carries through to the common areas as well as unit interiors. We typically include in our renovated unit package new washed wood vinyl plank flooring. This product does very well when compared to other products against water damage and does not need replacing each time a tenant vacates. We also include a 5 1/4 inch baseboard which doesn't sound like much but compared to other C class units it's a big improvement / upgrade. Additionally we add glass mosaic or stone backsplash. This gives a big wow factor. To us it's worth the extra expense. Also we prefer to use either a black or stainless appliance packages. We have found these tend to appear in better condition over a longer period of time particularly when it comes to replacing stoves.

Capacity

We have found when we stay true to our philosophy regarding curb appeal and remain at competitive pricing our properties stay full or very near capacity. To us staying at capacity is all about Curb Appeal throughout the exterior, common areas and unit interiors.

Collections

Maintaining great collections starts with the leasing and pre screening process. We believe we can create an environment where everyone is set up for success rather than failure by properly income screening our applicants. Income alone however is not enough. Applicants must demonstrate the following three aspects historically in our background check.

Ability to pay and willingness to pay. We do not stretch to accept tenants that might struggle making timely rental payments. Nor do we accept tenants that have a history of not paying debts or rent on a timely basis.

Cost

When it comes to cost it goes without saying, cost to consumer must be competitive. This Cost Principle however has to do with cost to operate. In doing everything right on all fronts without a close eye on operating expenses everything else is lost. We believe our expenses long term are lowered by reinvesting in the asset with regular upkeep. Not only does this support our curb appeal theory we believe it cuts costs over the long run.

We have bought and sold many properties in which the entire difference between success and failure is operating costs. For this reason we have created Multi Housing Management or MultiHousing.com. We only hire and maintain relationships with productive team mates. We negotiate every third party contract with eager to work vendors. We keep a close eye on cost of equipment and parts. Most importantly we are very in tune property condition or curb appeal.

We do not have a coupon clipping only mentality. We understand property condition is a cycle that if kept up with can be prolonged indefinitely. We have bought and sold many properties that are at the tail end of the condition cycle. We have a mind set that we fix problems when acquiring assets. Many times the problem is property condition. Other times the management of a property is the issue. Either way it always circles back to expenses.

Cash Flow

We maximize cash flow by utilizing both sets of The 4 C’s principles above. Everything above funnels down to this point. The better job we do on all the above the better our cash flow is as a result.