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The mission of AFI is to Prosper All Stakeholders. “Prosperity” is defined as, “the condition of being successful or thriving.” While clearly defined, “prosperity” differs from person to person. Some may feel a sense of success from being promoted at work, receiving praise from a friend or loved one, or maybe even simply making it through a challenging day. The AFI team believes that in order to prosper, in order to feel successful, one must first feel safe.

AFI acknowledges that the tenants residing at complexes we manage are in fact our stakeholders; therefore, it is our mission to ensure both their prosperity and safety. Thankfully, we are currently living in one of the safest times in our country’s history. An individual’s chances of being involved in a random crime are as low as they can be for a large, diverse society (Grohol, 2019).

Despite statistics, safety is more abstract and can be heavily influenced by one’s background and previous life experiences. What feels unsafe for one, may feel perfectly safe for another. Dr. Anita Zuberi notes perceptions of a lack of safety have an adverse effect on adolescents. “Feeling unsafe can lead to limited personal freedom, social isolation, and a lack of trust, while feeling safe is linked with positive general well-being (Zuberi, 2018).

AFI believes that our trained/certified Property Managers living on site at the property they manage instantly provides comfort to our tenants, and ensures that the community is a safe place for all who want a quiet location to enjoy their lives.

By living on site, AFI Managers have a greater sense of ownership for the property which they are responsible for and can quickly respond to serious issues. In addition to the benefits listed below from Appfolio.com that Owners experience, our Managers themselves also realize several advantages that living off site would not otherwise allow them (Miller, 2012):

Property Owners:

• Interest in the Investment – Like Owners, On-site Managers are heavily invested in the community as any improvements or deficiencies also effect where they live.

• On-The-Spot Service – Owners and residents alike should recognize the benefit of extra security/service that comes with a 24-hour On-site Manager.

• Selling to Prospective Residents –
  On-site Managers can best communicate the benefits of their property because they live there themselves!

Property Managers:

• Increased Efficiency – AFI Managers save both time and money with full rent concession for living on site in addition to zero daily commute.

• Increased Urgency – On site emergencies can be addressed quicker by AFI teams that are intimate with any issues.

• Increased Trust – Have you ever had to try selling something you would not buy yourself? AFI Managers have not!

Owners, residents, and our Managers themselves all realize substantial benefits from living on site. Because trained, accountable staff are placed at the asset, AFI believes we are growing one step closer to realizing our mission of Prospering All Stakeholders.

  References:

Grohol, John M. “Feeling Unsafe in a Very Safe World.” www.psychcentral.com, Psych Central, 11 July, 2019, psychcentral.com/blog/feeling-unsafe-in-a-very-safe-world/.

Miller, Aimee. “Explaining the Advantages of On-Site Management To Owners.” www.appfolio.com, Appfolio Property Manager, www.appfolio.com/blog/2012/10/explaining-the-advantages-of-on-site-management-to-owners/.

Zuberi, Anita. “Feeling Safe in a Dangerous Place: Exploring the Neighborhood Safety Perceptions of Low-Income African American Youth.” Journal of Adolescnet Research, vol. 33, no. 1, 2018, pp. 90-116, doi:10.1177/0743558416684948.

According to the Bureau of Labor Statistics, the unemployment rate in the US is currently 3.6%, the lowest it has been since 1969. Qualified job seekers will likely look at this news favorably, as it means many employers are having to increase wage offerings in order to attract top talent. However, to Property Owners, news of a thriving economy can be detrimental to an already struggling asset.

In terms of maximizing the profitability of an asset, the Property Manager plays one of the largest roles in implementing solutions to improve performance and effectuate change onsite. When a reliable and on-purpose individual is placed to oversee the property, Owners can feel more at ease with taking a step back and relying on their team to achieve the desired results. Unfortunately, when Owners find themselves working with an under-performing Manager, making a transition can be a difficult process.

Continuing to work with an underperforming Manager can appear to be a more appealing solution as various factors can make the search for a replacement quite difficult:

1. Unqualified Candidates – Unemployment is at an all-time low meaning many employers are considering candidates that may not have the qualifications necessary to be successful in the position.
2. High Competition – Again, unemployment is LOW; therefore, the candidates that are well-qualified are likely being sought after by many companies within the same industry.
3. Hiring Budgets – As unemployment rates continue to drop, employers begin to face higher wage demands for qualified candidates that may simply not be able to be met.

AFI has designed and implemented a robust, transparent, and high yield hiring process that results in quick turn-around a placement of qualified Managers onto a property in our nationwide portfolio. This process consists of seven steps (sometimes more) that utilizes several filters ultimately resulting in a final decision matrix.

Should an applicant survive all filters, he or she will receive a full-time job offer to work for the owning entity of an AFI-Managed asset. This process is easily replicated across any role AFI could need to hire for and has given our team confidence in the ability to quickly identify high-quality candidates. 

Gipson, Jeff. “Hiring In 2019: The Struggles And The Solutions.” www.jamesallenco.com, JamesAllenCO.com, 3 May 2019, jamesallenco.com/hiring-in-2019-the-struggles-and-the-   solutions/.

Irwin, Neil. “The Good News: The Job Market Is Solid. The Bad News: The Job Market Is   Solid.” www.NYTimes.com, NY Times, 5 July 2019, www.nytimes.com/2019/07/05/upshot/jobs-report-analysis.html.

Le Phan, Linda. “The biggest hiring challenges we’re all facing today, according to 15 hiring experts.” www.TheLadders.com, The Ladders, 13 Sept. 2019, www.theladders.com/career-advice/the-biggest-hiring-challenges-were-all-facing-today-according-to-15-hiring-experts.

“News Release – November 2019.” Bureau of Labor Statistics, vol. 19, no. 1868, Nov. 2019.

How to Retain Happy Tenants:

Renewing a happy tenant has a lot of potential to be a win-win situation for both the tenant themselves, and the property where he or she is living:

Tenant:

1. Does not have to incur additional expenses involved with moving
2. Does not need to restart the “apartment hunt”
3. No interruptions to routine or unintended consequences

Property:

1. Does not need to incur additional expenses to turn/renovate the unit
2. No need to spend time searching for a new tenant to fill upcoming vacancy
3. Retention of a rent-paying, happy tenant on the property!

According to Rent.com, tenants who decide NOT to renew their lease can spend up to 60 days searching for a new community (Rent Editorial Team, 2018). This means that if you are a tenant considering moving out and have also waited to make that decision until receiving your 60-Day Notice to Vacate, you have likely waited too long.

A recent Avail.com survey reported that finding a new tenant or, losing a renewal, could cost as much as $2,500 per vacancy (Manolas, 2019). Avail provides the following helpful tips to encourage happy tenants to sign their renewals:

• Speak with the tenant sooner, rather than later – Avail recommends beginning renewal conversations with tenants as early as 90 days in advance.
• Maintain a relationship with all tenants, current and past – Arguably the number one tool a Manager can use to encourage a renewal is their level of service. Treating everyone with courtesy and respect can go a long way when these conversations begin to take place.
• Make the renewal process as easy as possible – Overcomplicating the process can lead to unintended frustration. Avail recommends an online process where terms can be changed if needed, adjusting lease dates, and sending to the tenant for signature.

“How Long Does it Take to Find an Apartment?” www.Rent.com, 6 Dec. 2018, www.rent.com/blog/how-long-find-an-apartment/

Manolas, Kasia. “Lease Renewals: Are You Going to Lose Your Best Tenants This Year?” www.avail.com/education, 27 Aug. 2019, www.avail.co/education/articles/lease-renewals-are-you-going-to-lose-your-best-tenants-this-year

Property CAPEX: Friend or Foe?

The goal of capital expenditure (CAPEX) is to improve a property to both attract and retain tenants. Why then would any Owner not agree to completing CAPEX projects? The answer, high costs.

One item considered a necessity is general maintenance and upkeep of the roofs. Because flat roofs are associated with lower costs, it is easy to find an apartment complex where all of the buildings’ roofs are flat. However, according to BRAX Roofing, the flat roof that was installed during construction will likely end up costing new Owners in the long run due to:

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1. Ponding Water – Standing water leads to serious problems such as leaks and algae growth.
2. Debris – Remnants of leaves, branches, and other items result in blocked drains.
3. “Alligatoring” – Roofs that have begun to crack and bubble leading to further damage to the building’s structure if not treated properly.
4. Buckling – Because a flat roof’s membrane is one continuous sheet, shifting of the structure over time can cause the roof to buckle.
5. Wind – Flat roofs offer less protection to the entirety of the structure from severe winds.
6. Leaks – All of the issues above can cause flat roofs to begin leaking.
7. Shorter Lifespan – In general, a flat roof should last at least 15 years; however, this time frame can diminish based on inclement weather or quality of materials used.

The average apartment is reportedly 861 square feet with the average price to repair the roof of that apartment varying from $1.50 – $10.00/sq. ft. Using $5 on average, it would cost $4,305 to repair or replace a single roof. If the roof in this example belongs to a community of 100 units, it is likely not the only roof requiring repair or replacement. Suddenly, a simple job has turned into a major expense.

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The example above paints a clear picture of why Owners approach property improvements with hesitation. Whether the work proposed is cosmetic, or an emergency, the following tips can help Owners and the operating team manage CAPEX projects effectively:

1. Align yourself with the correct person to do the work – Collect multiple bids on the same scope of work, interview contractors, and compare/contrast the proposals.
2. Assemble the team – All parties involved should have a clear understanding of their role and responsibility in the project.
3. Overcommunicate – Establishing an updated schedule holds team members accountable to ensure work is progressing and gets completed on time.
4. Establish a clear budget – All team members and contractors should understand that the budget is not a goal, butrather a necessity.
5. Allocate time – Take time to assess work as it is completed, and what work remains.
6. Analyze the process – If all goes well, this may be the first improvement project of many! Once the current project is completed, take time to reflect on the process and how certain aspects could have been better implemented.

References:

“Build Apartment Cost.” www.Fixr.com, www.fixr.com/costs/build-apartment

“How Much Does a Flat Roof Cost?” www.CostOwl.com, www.costowl.com/home-improvement/roof-flat-cost.html.

Matthews, Ben. “Watch Out for 7 Common Flat Roofing Problems.” www.BraxRoofing.com, 28 Dec. 2017, www.braxroofing.com/blog/watch-out-for-7-common-flat-roofing-problems.

Sullivan, Megan. “Six Keys to Effective CapEx Project Management.” www.LodgingMagazine.com, 22 July 2015, lodgingmagazine.com/six-keys-to-effective-capex-project-management/

From the moment an individual decides to become a renter, to the moment they officially sign their lease, there are several first impressions that occur which can potentially derail a great lead. Think about it:

1. Advertising – How do potential renters learn about your community? Do you have a website? Is it current with up to date information? How about visuals and functionality? Does your customer service/sales team remain responsive to new inquiries?
2. The Leasing Office – Is your office easy to find? Clean and professional? Are there handouts about property amenities for tenants? How are they greeted when they enter the office? Is the staff alert and well-mannered?
3. The Showing – Do you have a designated show unit? If yes, what are you doing to ensure the highest level of cleanliness? Do you have air fresheners to create an inviting smell? Is the unit well-lit? Ultimately, would you be excited about the unit if you were a potential tenant?

If you answered no to any of the questions above, it is possible that you or your team are not making as great of a first impression as possible. However, possibly one of the most important first impressions (and often most overlooked) is a property’s curb appeal.

Curb appeal is, “the attractiveness of a property for sale and its surroundings when viewed from the street.” Before a potential tenant sets foot on the property, a message is being resonated to them from the street level. This message could be welcoming if there is a

well-lit exterior, ample signage, and colorful plants; it can also derail your property’s leasing efforts if management ignores items such as overflowing dumpsters, peeling paint, and overgrown greenery.

Forbes.com identified three specific areas on properties where excellent curb appeal standards should not be overlooked (Greer, 2018):

1. The Front Door – While the article refers to the front door of a residential home, the same should be expected of the front entrance to the Leasing Office or show unit:
   • Freshly painted
   • No remnants of any clutter
   • Colorful plants to draw attention
2. Landscaping
   • Mowed yard with trimmed bushes
   • Planted flower beds
   • Clear of weeds
   • Décor inside of the unit should also be addressed
3. Exterior Materials
   • Consistent, monochromatic paint colors
   • Clean brick or siding
   • Power wash buildings regularly/as needed

References:

Greer, R. (2018, April 11). Curb Appeal Counts: Three Steps To Increasing Interest In A Property For Sale. In www.Forbes.com. Retrieved from https://www.forbes.com/sites/forbesrealestatecouncil/2018/04/11/curb-appeal-counts-three-steps-to-increasing-interest-in-a-property-for-sale/#5b921e863d8b