Expert Blogs

The payment of rent for use of an item is part of our everyday vernacular. We rent cars, homes, boats, even televisions. An airline ticket can be seen as renting a seat on an airplane to a destination on a particular date and time. Most often, however, a conversation about rent refers to real estate property.Rental property can be inhabited by people, businesses or things. Homes and apartments are rented to people for residential use; malls rent “store...

Technology is in constant motion.  Everybody knows that.  And every platform in use within your property management company is not on automatic update.  In fact, there are probably a few applications in use that worked better in version 3.1 than in 4.1.  Who has time to check?In larger organizations with an IT department there's an app for that;  its called human staffing with expertise.  For smaller organizations its call...

The economics of multifamily housing is something I understand.  The economics of health care is a complete mystery to me.   However, I believe the two have a strong correlation going forward.Apartment rents are a component/percentage of household income.  So is medical care.  As costs of discretionary items increase (as a percentage of income- things like health care), the location of housing will become more of a...

Knowing about comparable assets is important in a competitive environment.  Every potential resident and most current residents are shopping your property and those around you.  It is imperative that you do the same.How do you determine if an asset is a comparable?  According to the Appraisal Foundation a comparable asset is determined by comparability analysis:Comparability analysis is a fundamental study in determining property value. This...

Who wants to be average? Not you.Demographics research can live and breathe in the averages for years encapsulating data-rich reams of information in the recesses of difference between mean, median and mode.  Who cares.  Great dinner conversation but seldom actionable when real dollars are in play.Quality, actionable information is almost always worth its weight in gold.  The same is true when it comes to acquiring demographics information as an...

Too often leasing teams, trained up and fired up, lose every advantage in the first ten seconds of interaction with a potential resident.Here is a real life story.  A prospective resident walks into the leasing office. The first person they see behind a desk is reading, eating chips and has headphones on. This person never looks up.From the office behind this person, recognizing there is someone in the office, they lean over from their chair and yelp...

How do you build the capital stack in a nothing-down deal?  Not very well.You see it all the time; people touting the virtues of no-money-down deals- usually directed at the inexperienced or uninformed.  I am assuming that are you are neither, yet temptation prevails!Why?Because we continue to hear about the winners.Charlie Rose on 60 Minutes ask Steve Wynn (casino owner) if he had ever known a player that had consistently beat the house. His answer...

In the Tom Cruise movie, The Last Samurai™, a hobby of one character in the movie is to find the perfect cherry blossom.  In the end, he concludes that they are all perfect, just as they are. This is unfortunately not true in rent roll analysis; few are perfect, most are flawed.The purpose of the rent roll is to act as a current and historic record of rental revenue due the lessor based on valid, in–force leases.Standing behind this record of...

We have all experienced making that trip to a store to grab the "special" finding only disappointment because the product is sold out.As property managers, to the best of your ability, assure your leasing prospects avoid this same fate; having ready product is imperative to making the sale.When a leasing prospect has made it all the way to your door, in person, what is the probability they will make a second trip if you are not prepared to show them...

In the recent recession household formation plummeted.  And although it’s bouncing back, it’s interesting how and where population increases are showing up.  The rise includes more than just the urban core.As the unemployment rate decreases this time around we are seeing more single-person households at the upper income levels of multifamily rentals- demand remains for two-bedrooms with a shortage of SRO (single-resident occupancy...

Goals require a plan of action.  Sometimes the thing (goal) right in front of us takes the cake.  I mean, whatever the goal is, that's the one thing that makes the earth move. There will always be tasks list, objectives, strategy and tactics.  At the end of the day you must be able to measure accomplishments, measure progress towards an established goal.In the spirit of getting that one thing accomplished here are some proven applications...

How do you determine rental increases?  Through careful market analysis or hokum? Three phone calls to competitive properties or careful consideration  of micro and macro events affecting the asset and surrounding competitive marketplace?There is always a balance to strike between taking price and remaining competitive.  Consistent calibration and goal oriented yield management can guide you towards meeting rental increase...