044: Creating a Community, Not a Construction Zone

Let’s talk about rehabbing because most people get it wrong. How does it work and relate to work processes for your properties? What does it look like? What should you do? You don’t want your property to look like a construction zone. Some believe the correct way is to do all improvements and repairs at the same time.

The right way is to make the rehab process gradual to show that you care and manage tenants’ expectations. Tenants expect rent to go up every year, and we never disappoint them by doing clean, nice, consistent A-class management. You have to earn the right to charge more.

Topics on Today’s Episode:

• First thing done at properties is to change the lighting; take out ugly ones and replace with bright lights for people to notice before and after difference
• Important for managers and maintenance to know people in the “community” and how they perceive where they live
• Be methodical when transitioning a property; constantly improve assets
• Raising rents can just mean having a good, trained salesperson
• If renting apartments, aim for a 65% renewal rate; renewals make you money
• Spend time and money cleaning up or putting away cables and wires
• Do as many improvements and repairs in-house to be efficient and save money
• Best form of flattery is when tenants find your next tenants through referrals
• Manage properties up; up rents, credit scores, standards, and improvements
• Keep tenants’ home life happy, and they will pay you a lot of money    

Links and Resources Mentioned:

Multifamily Legacy Podcast on Facebook

 

Quotes:

“You should never want your property to look like a construction zone.” - Corey Peterson

“You have to earn the right to charge more.” - Corey Peterson

“We’re in the people business where people live...their home” - Corey Peterson

“You want to be very methodical in how you’re transitioning your property.” - Corey Peterson

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