Posted 5 months ago

Transitioning Tenants From a New Property

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Today, we are going to be discussing the monthly updates that we receive from Jason and Kevin on their acquisition in Kentucky, which we send out into a monthly update to our investors just to keep them updated with our progress and what's going on in line with our projections plus what we're still working on just to size up what's been happening and where we're going from here.

At this point we also had our quarterly payouts happen for the first quarter this month and then we just broke it down into a number of different points mainly focusing on general items, leasing items, and maintenance.

Over about a third of the building is now paying the new market rents. When we acquired the property one of the first items to tackle was a rent raise strategy so we're over a third of the way there. It’s good that we've been able to do that within the first quarter of owning the property. Construction is almost complete; we should have our construction inspection by the middle of September so all those items are just getting finished up now. The vacant units as we are turning them are getting turned very quickly and we were happy to see in the month of August that the vacant units are getting a lot of activity. We had 19 applications during the month of August. We've taken a position where we've done moderate advertising on those 19 applications. About 75% of them have been walking traffic, it's densely populated making it a desirable area for the tenant class that we're looking for and at this point, it hasn't seemed necessary to push out on other means. We have simple ads and some stuff up on apartments and a few of the other sites in the area but nothing major out there besides signs and flyers that are out bringing in enough foot traffic.

It’s great to see people are out there bringing in applications. Now we are just making sure that of the 19 tenants that we are finding out who is qualified and the right tenants to come into the building because this building when we took it over there's about six hundred units in the area ours being 90 for our building stood out as one of the will say problem buildings so we're trying to do is keep all the tenants who are of course good tenants, good-paying tenants but we want to make the property better and slowly turn over the tenants that were problem tenants. We have a couple of people who are causing the most of the trouble and we're trying to move them out and bring in new tenants to just make a better area for people to live in so right now we're on a lot of month-to-month leases, we're providing weekly progress trying to transition all of those into lease renewals for our market rents or if they're not interested in renewing at the new rent rate then they will be out and moved to a to new place.

To learn more about multifamily investing visit our website: https://www.multifamilyfoundation.com/order-28415099



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