If you can master vacancies and maintenance you can maximize property value. These are by far the two most significant costs after your bank note. At StageCoach Management, one of our key differentiators is our ability to significantly reduce vacancy times for our clients. Turnover dramatically decreases property value. Earlier this year, we accomplished an impressive feat;filling a vacancy in less than a day at one of our Heights properties (pictured). There are three main components that allowed this success story to take place.
First, we strive to maintain a positive relationship with our tenants by ensuring their needs are met and by communicating proactively. Just quickly responding, being friendly, and handling maintenance requests often in less than 24 hours separates us from other management companies. To date, 94% of our tenants stay more than one year.
A tenant we had a good relationship with was moving out. We got permission to show his unit on specific days to prospective tenants. We require tenants to give us a 60 day notice which allows us to game plan and pre-list units on over 800 websites AND the MLS. We were able to show prospective tenants the unit and got an application before the existing tenant even moved out.
We know how important vacancy filling is to our owners and we go above and beyond to lower vacancy time. In addition to our proprietary real estate marketing and sales strategy, based on a combination of world-class techniques from sales and marketing experts, we also have an in-house sales team that exclusively focuses on marketing to prospective tenants and showing units. This allows our clients to obtain numerous applications in very little time, leading to low vacancy times and high quality long-term tenants.
The final component of our zero-day vacancy is our in-house contracting and property maintenance. To date we’ve done over $3M in extensive remodeling. We are more often than not able to complete make readys in less than 7 days. In this case the previous tenant moved-out on a Saturday afternoon, while the new tenant was moving-in the next day - giving us less than 24 hours to turnaround the unit and make it rent-ready. However, given our proactive property maintenance plan and inspections, repairs were minimal and we knew exactly what needed to be done well in advance of the move-out date. We coordinated work to start right after the tenant turned in their keys, and be completed and inspected that very same day. We performed a final cleaning the next morning before the tenant was scheduled to move-in.
The positive outcomes of StageCoach being a vertically-integrated real estate services are clear: we reduce vacancy times and costs for our clients by maintaining positive relationships with our tenants and contractors, using world-class sales and marketing techniques, and by being proactive in all aspects of managing and rehabbing our units. In this case, we filled a vacancy in less than 24 hours while at the same time obtaining 18% higher rent for our client. Given the shortened lead time even after the vacancy fee the owner will make MORE money over the next 12 months.