Project Details
The 105 site community recently underwent a used home infill that had stalled. Blank Family Communities was hired to finish the infill along with provide better back office reporting, decrease delinquency and increase curb appeal. The end goal of the community was to sell.
Poor Operational Efficiency
Lack of Collections and High Delinquency
Monthly collections for this community were sub 80% and the community had a legacy delinquency of roughly $35,000 (which was slightly over their monthly bill out). BFC started to put delinquent residents on a 90-day payment plan and we ended up evicting a small number of people, most of the residents owned their home and we were able to hold them to their payment plan. After the legacy delinquency was taken care of, we maintained near 100% collections from this community. The biggest change was seen because residents now knew that management was holding people accountable, every month.
Low Occupancy
The community had a physical occupancy of almost 100%, but the economic occupancy was closer to 75%. BFC implemented a new renovation and advertising strategy that allowed us to fill the remaining inventory homes at a higher rental rate.
Inability to Sell & No Distributions
The ownership group had attempted to sell the community for the better part of a year and was taking no investor distributions. We stabilized the community for a full year and then took it back to market. During the stabilization period, we were able to give out consistent quarterly distributions and caught the community up by the time it sold. The community ended up selling for over $1,000,000 more compared to the offer that the ownership group received before our management.
