Turnaround of 47 Rental Units

Turnaround of 47 Rental Units

Del Val Realty & Property Management (“Del Val”) took within the property management duties to get a group of 47 rental units in Philadelphia and New Jersey in 4 separate buildings at the time of August 2015. At the time Del Val took over, the buildings were being managed by way of a single broker with minimal support.

The buildings had extensive collection and deferred maintenance issues. When we took over, the buildings were 81% occupied where there was over $150,000 in unpaid rent. Additionally, it took months and in some cases years to comprehend that the buildings had extensive deferred maintenance and nearly all unit needed new paint, carpet/flooring, new/upgraded kitchen and also other general upgrades. The common hallways also needed work to cause them to become acceptable to tenants. Basements were stuffed with years of trash forgotten and needed extensive clean outs. The exteriors were also rundown, and landscaping needed reworked.

Del Val took over and began to upgrade the vacant units with paint, carpet along with improvements. We also spent major time and effort to acquire all the buildings approximately code from local township assuring regulators. We cleaned up the outer areas and did extensive clearing of trash from basements and storage areas. This allowed tenants to possess access to their storage areas and dramatically reduced fire risks.

We then increased the rent $25 to $50 on any units we rented. We also gave the current tenants a whole new 2-year lease with rent increases every 3-4 months to bring the rent as much as market rates. We have also increased rent at intervals of lease anniversary.

This process has become going on over 3 years now and listed below are the results.

FY2016 FY2017 FY2018

Revenue $351,000 $385,000 $400,000

Net Income $114,000 $198,000 $270,000

Occupancy % 81% 98%

Average Rent $700 $780

As you will notice by the above, the revenue has improved yearly, however the real improvement is the bottom line post tax profit. The net gain has greater than doubled from $114,000 to $270,000. This may be a result of the occupancy percentage going from 81% to 98% and enhancing the average rent by over $80 per unit during the last 36 months. We have also completed a lot of the deferred maintenance items and after this maintenance costs have dropped by over 50% with this money dropping to tha harsh truth.


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