Asset Management
Multi-Family or Portfolio Property Management
Asset Management v Property Management
Before hiring a property manager it is very important to establish what you are looking to do. Are you hoping to buy a property, maximize its earning potential and sell or refinance as a stabilized, long-term hold or are you looking for someone to take on of your headaches for you? There is no right or wrong answer but when choosing a firm to manage your property it is crucial to choose one that understands what you want.
If you own or plan to acquire a house (or 10) and you want a company to collect your rents, serve notices when necessary, inspect yearly, process maintenance requests, deal with your HOA, and basically make sure your headaches are minimized then a traditional property management company would be the best fit for you. Our property management division is headed up by Shelby Neidert. Shelby and her team are experienced in single-family and small multi-family properties and have the tools and systems in place to offer you the highest level of service with the best possible results.
If you own or plan to acquire a large property or portfolio of smaller properties where your goal is to bring rents to market value and maintain consistent growth, renovate to earn maximum revenue, and build toward stabilization for a sale or refinance then you should be looking for an asset manager, not a property manager. Jerrid Richards and Johanna Kok have successfully turned a number of failing properties into high-performance assets, in less than 12 months in most cases.
It’s all about goals and expectations…
In summary, a property manager is going to be attentive to the little things, while an asset manager is focused on the big picture.
Renovation
Renovation plays a massive role in asset management, it is crucial to know what a property needs to maximize its earning (rent) potential, and it’s equally as important to know what renovations provide no return. RH has a network of professional contractors and specialists who we’ve worked with on several projects and have a vast understanding of what is needed to make an asset perform without unnecessary frills.
Stabilization
We believe there are three parts to stabilization.
Eliminating Problematic Tenants: This does not mean mass eviction. Landlords want to provide their tenants with a safe, comfortable place to call home, they don’t want to be collection agencies or security guards, and unfortunately, most acquired properties come with a few tenants who either don’t respect the right of peaceful enjoyment for their neighbors or feel that it’s the landlord’s place to constantly chase them for rent.
Eliminating Ongoing Problems: Repeat repairs can be devastating to a property’s cash flow. No one wants to replace big-ticket items but many times it makes more sense to eliminate the problem than deal with it every day. When stabilizing a property we look for the repairs or renovations that will stop your monthly maintenance bills from consuming your income.
Bringing Rents to Market Value: When a property has rents below or well below market value, you can be sure the living conditions are equally below the standard. Having rents at market value provides landlords with the ability to maintain the property and ensure that it is safe and comfortable for their tenants.