Unlocking peak performance involves a careful dance between product considerations and execution strategies.

Results Snapshot:

• Yearly Revenue: $558,000 (+39%)
• NOI (Net Operating Income): $433,500 (+41%)
• Rent/sqft: $13.09 (56% increase)
• Occupancy: 91% (-8%)

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Product Considerations:

Analysis reveals that a significant majority of our new rentals are women (>70%). This insight, coupled with a mentor's advice on prioritizing security and safety, has shaped our value-add strategy.

For context, something that stuck with me from my mentor: "I want the property to have a level of security & safety where I and they would feel comfortable being at the property regardless of the time of day/night."

This statement has been instrumental in shaping our strategy, emphasizing the importance of security measures as we work to enhance the property's overall value.

Key Areas of Focus:

1) Lighting

We recognize that lighting is a crucial aspect of security. While it may be a substantial upfront cost, we've found that using photocells ensures lights are only on when truly needed, minimizing unnecessary expenses.

2) Access Control

Access control serves a dual purpose: safeguarding property access and providing valuable tenant data. With up to 11 access points at some locations, we've implemented rules tailored to unit types and buildings, offering flexibility. Vendor access codes change regularly, adding an extra layer of security.

3) Security

Two important points to make about security: Firstly, it is important to note that security cameras will not stop something from happening onsite. Unless you remotely monitor (in-house or 3rd party) the system, the cameras are primarily in place for evidence (claims or charges). Additionally, being on the "drive-by" list enhances the property's overall security profile.

4) Aesthetics

Our team is committed to maintaining clean, presentable properties. We emphasize the importance of aesthetics, knowing that at any time, management or investors may visit to ensure a welcoming environment.

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Conclusion

While most improvements take time to complete, the dividends they pay are significant. As an example, improvement projects were completed in November 2022 completed and stabilized in March 2023, demonstrate this:

Before (Jul 2021 - Aug 2022):

• Yearly Revenue: $401,300
• NOI: $307,500
• Rent/sqft: $8.39
• Occupancy: 99%

After (Oct 2022 - Sept 2023)*:

• Yearly Revenue: $558,000 (+39%)
• NOI: $433,500 (+41%)
• Rent/sqft: $13.09 (56%)
• Occupancy: 91% (-8%)

*Monthly Rev & NOI stabilized in Mar 2023

These enhancements not only reflect positively on our financials but also significantly elevate the quality for our valued tenants.

–RuCo

P.S. If you would would like to download some of the templates we use (Purchase Agreement, Due Diligence Checklist, Refinance Analysis, Capital Improvements Tracker) click here.