INVESTMENT PROPERTY OWNERS...How does having the ability to be a more passive investor without sacrificing cash flow or equity sound?
Just about everyone we meet who owns investment property wants to be an investor, NOT a landlord. You didn’t invest in your property because you wanted the job of managing it.
But, finding someone you can trust to run your property isn’t always easy, not to mention finding someone who will actually operate it as if they owned it.
Ultimately, you want someone who is going to watch the expenses, collect the money, treat the tenants in a way that makes them want to stay, and maintain the property like you would.
At the same time, you want someone who understands how to, and has a plan for, making your property more valuable, generating more cash flow for you, and doing so without taking unecessary risk.
Which is where we come in. Because we own properties of our own, the management system we’ve created was engineered through the eyes of an owner and thus, everything we do when we manage your property is done as if we owned it.
Our goal is to allow you to be an investor who can tell your friends about how much you love owning investment property because of how little you have to do and how much you make!
Here’s how it works…
One thing often overlooked is the fact that streamlined operations create a competitive advantage for investors, which is why we have a system for streamlining the operations of every property we manage.
1. Revenue Management
The value of your investment is derived from its ability to generate net operating income (NOI). The most effective way to generate more NOI is to always be pushing for more revenue.
We, unlike many management companies, are pro-active regarding rent increases, charge passthroughs, etc. We are determined to maximize revenue without creating unnecessary risk. We never do something for someone else that we aren’t doing ourselves.
2. Expense Control
The second part of the equation for increasing NOI, and value, is controlling expenses. In an ever inflationary world, we work hard to make sure your income and equity aren’t being deteriorated by wasteful spending.
We are determined to maintain your property while doing it frugally because we always approach it as if we were spending our own money.
3. Operations Efficiencies
One way to create a moat around your investment is by operating more efficiently than the competition.
Responding quicker, doing things for less money, and hiring better staff are just a small part of the system we employ that creates a sustainable competitive advantage.
4. Asset Maintenance
Your asset’s ability to generate cash and preserve value is directly correlated to its condition.
We understand that fact and have developed property maintenance systems, both preventive and responsive, to ensure your property’s ability to generate a solid return is not reduced from a lack of proper maintenance.
5. Vendor Network
Our ability to keep your asset performing at its best comes, in large part, as a result of the relationships we have with the best vendors in the area.
These are relationships we’ve forged over the last 25+ years and their impact on the value of your property is immeasurable.
Because of the size of our property portfolio, we get a faster response, better prices, and a higher level of service. Our vendors are an extension of our team and a huge benefit to you.
5. Investment Understanding
Ultimately, value and cash flow creation comes as a result of investment understanding and executing on that understanding.
Because of our experience as property owners ourselves, we make every management decision through the lens of an investor and that perspective is what creates increased equity and cash flow for our clients.
THE BIGGER PICTURE
On the surface it looks like operating your property is our main job. However, we don’t look at it that way. We see our main job as increasing the value of your asset and the cash flow it generates.
1. Budgets & Pro Formas
One of the things we love most is looking at the overall metrics of your property and determining how much room for improvement there is. Often there is a substantial amount of room for improvement and we create budgets and pro formas to show you where you are and where we think you will be once our system is fully implemented.
2. Revenue Plan
One huge part of the budget and pro forma is the revenue side. When we agree to take your property on, we figure out how much growth potential there is in the revenue department and put a plan in place to realize that potential.
We’ve put together a system for increasing revenue that has proven successful time and time again.
3. Maintenance Plan
One of the most overlooked realities of what drives the success of an investment property is the importance of its condition.
If we’re going to generate the most revenue possible, the property has to be in good shape.
That’s why we put a plan in place for addressing maintenance items so that we can maximize the revenue potential of your property.
4. Assess The Property
Part of assessing where the property is and where it will be is taking a look at its current and projected future value.
Because investment real estate’s value is derived from the Net Operating Income (NOI) it produces, we focus the majority of our efforts on increasing NOI.
Once we’ve put together a pro forma for where we think we can take the property, we calculate what the value will likely be when we get there.
This is typically the most exciting part.
There have been multiple occasions where our system has swung value by multiple seven figures in just 18-24 months.
At the end of the day, plans are just plans and they don’t mean anything if they’re not executed. Once our plan of attack is agreed upon, we get to work making it become a reality.
6. Assess The Operations
Nothing in property management ever goes exactly as planned so we make sure we’re constantly assessing where we’re at and tweaking things as needed.
If we’re going to reach the end goal, we have to be able to make adjustments on the fly, as needed, without losing track of where we’re headed.
If you like the idea of having someone manage your property as if it were their own and want to have a more in-depth conversation about what we do, how it works, and how much it costs, you can fill out the form below or give us a call us at 360.943.9922 and we’ll get in touch with you to set up a time to answer any questions you may have.
Here are some answers to frequently asked questions
1. What All Does Our Management Entail?
Our investment and commercial property management program includes all rent collection, bill payments, tenant relations, on-site staffing, accounting, budgeting, reconciliations, preventitive and responsive maintenance, and more.
It is a full service program as our goal is to allow you to own real estate without having to hassle with it.
We also offer ala carte management services. If you’re just looking for someone to do the accounting, or the maintenance, or some combination of other services, we can tailor an offering for you.
2. How Much Does It Cost?
The cost of our management services depends on what we’re hired to do.
For full service management, our fees are typically a percentage of the gross receipts collected.
At times we’re hired to do just accounting, or just maintenance, or some combination of services and in those instances the fees can be flat or a slightly different percentage.
For more information, please contact us via the form above or by giving us a call at 360.943.9922.
3. What Type Of Reporting Do We Provide?
We use what we believe to be the best property management software there is, so our reporting capability is almost unlimited.
At the same time, most of our clients don’t want to be overwhelmed with reports so our typical reporting consists of a Cash Flow Statement, Cash Flow Detail Statement, and Rent Roll.
Reports, however, can be tailored to each of our client’s individual needs and be as limited or as thorough as desired.
6. What Types Of Properties Do We Manage?
We manage office, retail, industrial, self-storage, and multi-family property throughout South Sound Washington.
Currently our portfolio includes approximately 1,000,000 square feet of commercial space and over 1,250 multi-family units.
4. Do Owners Have Online Access?
Our management software does allow us to setup Owner Portals for those owners who want to be able to log in and access their reports at any time as well as other great features.
5. Can Tenants Pay Rent Online?
We offer all of our tenants the ability to pay their rent online and set up recurring payments online. They are able to pay via e-check as well as credit card.
Additionally, tenants are able to view their ledger, update their contact information, and create work orders all from their Tenant Portal.
What Our Clients Say
Joni Baker has been deeply involved in our real estate acquisitions for years. She brings intelligence and intuition to the opportunities we review and to the deals we want to do.
We have depended upon Prime Locations Inc. to provide advice and direction related to our investments and have established an excellent long-standing relationship built on trust and respect.
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