Buy and Hold Property Management
Accelerating Occupancy Through Timely Field Services
By Nickalene Badalamenti-Kalas
Increasingly, buy and hold property managers and investors are looking to move at-risk or delinquent assets to long-term, income-generating homes. In these scenarios, time literally is money. As a property remains unoccupied, it is not only failing to generate income, but it is also generating losses as maintenance costs continue to accrue to keep buy-and-hold properties in tenant-ready condition.
Moving properties quickly into tenant-ready condition also works to eliminate community blight. Speed and efficiency are of the essence as are code compliance, accuracy of inspections, the quality of field work provided, and completeness of documentation. A difficult order to fill without help.
Engaging an Experienced Partner
Savvy property managers and investors tackle this challenge head-on by engaging an asset management team who can deliver:
» A full complement of turn- and make-ready services to stabilize properties and values
» A nationwide network of field service professionals who can respond quickly to any eviction, rehab, repair, maintenance, or asset management requirements
» A mastery of code and regulatory compliance and documentation, to forestall preventable violations, added fees and costs
» Property registration services
» Disaster alert technology to forewarn managers and investors of potential storm damage to their assets, as well as an experienced field service team to perform asset stabilization services
Here are the essential elements in a market- and tenant-ready property strategy.
The Ideal Tenant
It is an axiom in the buy-and-hold universe that the quality of a home — and by extension, the quality of a community — determines the quality of the tenant. Good tenants are conscientious custodians of a property. They don’t want a “rental.” They want a home of which they can be proud and make their own, and care for as long as they live there. For many investors and property management companies, this presents a shift in perspective, from numbers on a spreadsheet to individual investments that generate maximum value to owner and tenant alike.
The long-term, successful buy-and-hold strategy begins with the understanding that a well-manicured, properly maintained, code-compliant property attracts tenants who want to stay and compound the asset’s value.
Vigilance is Key
Proper care and monitoring of at-risk homes is essential. Monitoring and responding to delinquency trends, resident and municipal concerns, and proactively stabilizing each asset will begin to enhance property values.
Inspection and Scope Services
In the buy-and-hold market, inspections are critical, whether prior to or after acquisition, to determine occupancy, document property condition, and establish the scope of turn- and make-ready services required for bringing the property to tenant-ready status. All inspections should incorporate a full set of geo-tagged and time-stamped photos in the inspection report, to determine scope of work needed and begin the bid submission process for completing all field services needed to quickly stabilize the property for the next occupancy.
Field Services
There is a host of field services that investors and property management companies should consider when preparing their assets to attract quality tenants. These encompass debris removal, lock replacement, general rehabilitations, HVAC, plumbing and electrical work, preventive and seasonal maintenance, landscaping, snow and ice removal, and various other occupied and vacant maintenance needs including roofs, flooring, pools, fences, and painting.
Enhancing both the visual and functional appeal of assets should include increasingly-expected smart home installations for locks, thermostats, automated irrigation systems, security and camera systems. Up-grades to kitchens, bathrooms, and landscapes have an immediate appeal for prospective occupants, and communicate the owner’s commitment to tenant satisfaction.
Registration Services
Asset registration is a highly specialized service that is increasingly required by municipalities, to ensure full compliance with varying regulations across different jurisdictions. These services include verifying jurisdiction through portfolio scrubbing, monitoring evolving local, county, and state ordinances, registering, re-registering, and de-registering assets, processing required fees and tracking refunds, and assigning local contractors for emergency services.
Compliance: Peace of Mind
Throughout the process of transitioning a property to tenant-ready status, there exists a minefield of compliance and regulatory mandates that must be navigated. A field service partner will assist clients in proactively handling code compliance to prevent costly and time-consuming violation remediation. Should a violation be issued, they should very quickly acquire the relevant specifics, reports and documentation, and deploy expert field services professionals to remedy the situation.
Pre- and Post-Disaster Asset Stabilization
An increasingly critical asset stabilization service is pre- and post-disaster property oversight. Developed by Five Brothers, CLADE™ Disaster Alert System is an advanced tracking and mapping technology to help managers and investors monitor property status in the advent of natural disasters or severe weather events. It leverages geospatial technology to help determine the likelihood of damage to properties potentially in a storm path, to allow proactive measures to reduce or prevent damage, and allows easy ordering of pre-disaster services that include board ups and electrical disconnects.
If damage is inevitable, CLADE technology identifies which properties have likely been impacted, and generates a report sent directly to the manager and/or investor. Once the area is deemed safe to enter, post-disaster field service orders include on-site damage inspections, board removal, debris cleanup, tarping, remediation and restoration work. Electrical reconnects are promptly addressed as well.
The Tenant-Ready Portfolio: Sustaining Community Value
The considerations outlined lead not merely to new occupancy, but enduring occupancy that drives asset stabilization, increases value, and enhances communities.
The need for urgency cannot be overstated. With a strong field services partner, at-risk properties are transformed into appealing, desirable homes that attract coveted tenants, and fuel continuous and long-term value — this is the ideal outcome.
