We have a great residential property management system. The properties that we personally own are in this system too. Unfortunately, we have found that most owners do not manage their properties as we manage ours. Rather, many landlords either don’t have the financial capacity/discipline or seem to see little value in capital improvements and regularly scheduled maintenance and their properties downward spiral as a result in terms of tenant profile, rents and occupancy levels.
While understanding that a return OF capital is important, a large part of our focus is the eventual return ON capital (yes we like monthly cashflow too, but increasing the balance sheet and net worth over the long term is more our focus). As such, we continue to invest money on capital improvements and ongoing maintenance. This is not a one-time event for our properties, it is ongoing. Our properties typically get the highest rents and the best tenants…and when they sell, they sell quickly and easily and the return ON investment has historically been outstanding. We feel this strategy will better serve us, our clients, and our neighborhood well for the foreseeable future.
That being said, at the end of each year we trim our client list and seek to serve like-minded investors/clients. In most cases, the addition of new clients requires the subtraction of another client(s). Our system may seem rigid to some, but we have found in times of oversupply of rental units or decreased demand of housing that the properties that adhered to this system never missed a beat in terms of occupancy or rent level. We want to treat your property just the same as we treat ours (if you’ll let us) and you’ll experience the same returns as us (which have been wonderful!).
If any of the above commercial comments resonate with your investment style, we’d be happy to meet with you and discuss.