Small and mid-sized apartments are gold mines gone untouched by the hedge funds. In between
those million dollar deals and large apartment complexes, there is a revolving door of small
and mid-size apartments available for investors.
Our original apartment locating service, was founded for the purpose of creating a significant
resource of quality tenants to enable us to increase the value of multi-family property. Since
the property's value is determined by its cash flow, by affecting that property's cash flow you
dramatically affect its value. Our expertise in the rental business and our access to an ongoing
supply of renters enables us to fill vacancies quickly and thus raise the market value of rental
properties. We offer valuable solutions for multi-family properties including special programs
for small to midsize properties (8-100 units).
Why Multi-Family Property
Multi-family properties offer investors advantages over other types of real estate and remain
a more stable investment. Three important factors account for this:
They are less dependent on business cycles for occupancy than other
types of real estate investments. It doesn't matter if interest rates and
home prices are high or low, apartments are generally more affordable.
Apartments have shorter leases; thereby offering greater protection
from inflation than the long-term leases associated with other
properties. That is, rents can be negotiated more frequently.
The pool of tenants is much greater for apartments than other types of
properties. This ensures a more consistent occupancy than industrial
and commercial properties, which usually have only a few tenants to
Rent Solutions' Advantages
Rent Solutions' greatest strengths are our ability to fill vacancies, to train
managers and staff for optimum performance, and to custom design a comprehensive
plan to convert a property from an under-performing money drain into a top-performing
cash machine. We can find tenants for whom a smaller community is preferable. We
can assume the role of property managers or sub-contract the service out. We are
able to slash the property's advertising budget, since we only get paid when we
Increase the Property Value
The higher the occupancy rate, the more attractive a property appears to a prospective
buyer. It is much easier to sell a property when it is 99% occupied versus 75% of capacity.
The higher the percentage of occupancy, the higher the rents can be set. This results in a
higher cap rate and a correspondingly higher valuation of the property. Apartments, condos
and other investment property can be targeted for massive action and exposure. This could even be
done on a property under contract prior to purchase to help facilitate financing or make the
property more productive. Target property criteria include:
- Properties with high vacancies
- Properties with rents set too low
- Properties with poor or inexperienced management
- Properties fitting a specific buyer's purchase criteria
The Right Size Offering the Greatest Profit Potential
We believe an opportunity exists for investing or brokering small to mid-sized
apartment communities (8-100 units) due to several reasons:
- They generally are not considered acquisition targets of institutional investors.
- They are typically not managed by the larger or more sophisticated property management companies.
- They frequently have absentee or inexperienced landlords, and cannot afford on-site maintenance or management.
- They find it difficult to compete with the big properties on amenities offered.
- These properties can generally benefit the most from rental locator and performance consulting services.
- We can significantly impact that property’s occupancy and, therefore, its value.
- Single-family houses typically have greater competition and property management problems.
Smaller apartment communities (8-100 units) also have fewer buyers to compete with for the purchase.
Institutional Investors tend to focus on properties with 100 units or more. The average investor
generally would lack the sophistication to purchase apartments with 8 units or more.
We have successfully offered consulting services to apartment communities that increase
traffic, fill vacancies and improve profitability. Performance consulting is the process of
analyzing a community to determine its strengths and weaknesses. Upon completion of our
analysis, we provide the community with a plan of action and work with the community to ensure
that its goals are met. Our fees generally include an initial consulting fee and may also include
an increased referral fee or performance bonus. The plan of action may include any or all of the following:
- Market information and analysis
- Property audits
- Provide information on target and sources of residents
- Develop staff training systems
- Increase exposure and communication through Rent Solutions
- Provide marketing suggestions and assistance
- Provide public relations suggestions and assistance
- Provide alternative leasing programs
Specialty Contract Leasing
We partner with Ellis Consulting Group to provide an apartment community with a full-time, high-energy
leasing professional whose only goal is to fill the property with qualified, stable residents. We create
a marketing and advertising plan to meet your community’s occupancy requirements supporting the lease-up
and our leasing professional.