Premier Property Management of Memphis Shares Numbers
Nearly every week we have investors in our offices to "watch" what we do. Let's get one thing straight right now...we are not exciting! But they don't come for excitement. Most come with questions of how we operate our business. They want to see the day to day operation of our businesses and get up close answers for themselves. Sometimes investors are able to come to town on a Tuesday and experience our weekly staff meetings.
Every Tuesday the entire staff gets together to go through each department and hear the good and bad. We hear from our renovations department, our buying department, any marketing news or updates, accounting and, of course, property management. Here is Nate's report from last Tuesday which 2 1 lucky investor was able to find out live and in person.
Premier property management continues to grow at a very steady pace. The company is set to eclipse 1,500 properties some time in November. We also are now working with over 550 clients.
Our Happy Meter!
I continue to track one very important number that is really buried deep within a report like this. How many sales go to existing clients each month. For us, this is our signal to how well we are performing both in service and in return. Since we do not have all the details when an investor uses a mortgage company for a loan, we do not always know the exact return a client may be getting. We can come very close to estimating that number internally, but really, whether or not they are buying additional properties and the tone of conversations with property management tell us the happiness of our clients. As long as existing investors continue to ASK for the opportunity to purchase additional properties, then I would say we are providing exactly what our clients want. In October, 54% of our closed transactions went to existing clients. For the year we are hovering close to 62% of ALL sales were purchased by existing clients. That alone speaks volumes about Happiness!
2-Year Leases & Rent Increases
this next graph shows how many properties were rented each month this year as well as how many of those properties were leased for 2 years and how many of those properties were leased above our internal zip-code rental average. I have always found numbers to be very insightful, but as always garbage in will lead to garbage out. When we view online rental renege options, we are amazed to see that not only are they very low compared to our rental rates, but they also show much higher vacancy rates. I cannot tell you how they get their numbers...I can say that none of the companies is local. On the other hand, our data comes straight from the actual rental contracts in our portfolio, so we pay very close attention to our trends and not so much to what a .com website says. You can clearly see that since June of 2012, 40% of the total homes rented each month are rented above the average rent of the entire portfolio under management in that zip code. That is an incredibly positive trend and has as much to do with the quality renovations as it does the actual management company.
This last chart shows our vacancy rate as measured on the first Tuesday of each month. Again, you can begin to see trends that mirror national rental trends. The numbers may be far better at our company but the roller coaster action of the data matches other trends. Property vacancies tend to spike late summer and show improvement from November thru April where occupancy tends to be highest. Our data matches that trend with one notable improvement. It appears that we will enter 2013 with a much lower vacancy rate - possibly 2% better than when entering 2012. That lower vacancy rate should make for an improved performance for the entire portfolio under management as we start 2013. We'll keep our eye on it!
Simply being aware of these numbers and constantly working to improve and measure improvement, are essential actions that have to take place at a quality company. Here at Memphis Invest, we consider ourselves much more than just a property management company or a neighborhood redevelopment company. We have a really, really good staff that works hard to be whatever our clients need us to be. I'll leave it at that for now!
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