Project Details
The community was in the process of a value-add through occupancy program and while occupancy had increased, delinquencies were very high. Ownership also acknowledged a lack of insight, processes and organization at the property.
Our initial review discovered a major disconnect at the staff-level with information being reported to management not matching up when a deeper look at collections/delinquency was taken. We also noted inefficiencies in the area of community maintenance. We took immediate corrective action that included re-staffing the community manager position as well as members of the maintenance team. At all levels, we implemented Blank Operating Methodology.
The Challenges
Low Collections
The community was in the process of a value-add through occupancy program and while occupancy had increased, delinquencies were very high. Ownership also acknowledged a lack of insight, processes and organization at the property.
Low Occupancy
The occupancy was not increasing at the rate in which the owners initially thought. They had fallen behind by a number of homes and as a result, were falling even further behind of their proforma
The Solutions
Getting Back to Basics
Examining and updating all resident information, integrating it into more robust and detailed management reporting systems. This provided us with a better understanding of collections dynamics and, in turn, the information we needed to put more effective procedures in place moving forward
Sending Notice of Demand letters to all residents with a delinquent balance of over $100
Increasing collection calls and door knocking efforts to twice per week
Increasing our underwriting qualification standards- ensuring only qualified renters were approved for occupancy
Changing of Staff
We found that the weak link at this property was the on-site manager and as long as they were at the community, our collections and our infill efforts were going to fall short. We ended up removing the manager and hiring a capable manager and provided them with the necessary training. Since then, we have not only filled all of the remaining homes, but have kept a turnaround time to 30 days or less in refilling vacant homes.
On-site staffing is the lifeline of our business. Hiring capable professionals and providing them with appropriate training and oversight was key to turning around this community. We have a set schedule for regular reporting and meetings with ownership, which gives them the insights and information they need to feel comfortable with to ensure the ongoing health and profitability of their asset.
