Property Management Case Studies
530 High St Overview
Property Details: 21 Unit Apartment Building plus 10 garages in North Bethlehem
Financials Prior to DLP Property Management
Value: $1,400,000
Annual Rent: $173,345
Annual Expenses: $48,500
Net Operating Revenue: $124,855
Financials 1 Year After DLP Property Management
Value: $1,850,000
Annual Rent: $199,785
Annual Expenses: $41,726
Net Operating Revenue: $158,059
Details:
When DLP Property Management took over the property, there were 2 vacancies and 2 tenants in process of leaving. Within the first 60 days of management, a total of 4 tenants were vacated and 5 units were leased. In total, within the first 8 months of management, 16 out of 21 tenants were vacated/evicted and 4 leases were extended, all with rent increases. Many tenants were consistently late and/or delinquent on rent. Upon move-out of undesirable tenants, a mix of new carpets and fresh paint was added to increase rent and overall attractiveness of units. All rents were increased upon lease expiration by a minimum of 3%. Currently, the building is 100% occupied, and has maintained an average of 97% occupancy. In addition, oil heating systems have been converted to gas, decreasing the heating bill (landlord pays heat ) by 60%. In addition, improved laundry facilitates are being added, with an expected increased revenue of $300 per month.
Outcome:
Increase NOI: $35,204
Capital Investment: $31,000
Increased value: $450,000
110-118 E. Center St Overview
Property Details: 9 unit apartment Building In Nazareth Borough
Financials Prior to DLP Property Management
Value: $350,000
Annual Rent: $52,053
Annual Expenses: $20,804
Net Operating Revenue: $31,249
Financials 1 Year After DLP Property Management
Value: $550,000
Annual Rent: $71,763
Annual Expenses: $17,776
Net Operating Revenue: $53.987
Details:
When DLP Property Management took over the property, there were 3 vacancies and 2 tenants in delinquency. Over the course of the first 35 days, the 3 vacancies were leased. Within 50 days of taking over the property, 3 tenants were vacated. By 65 days, the building reached 100% occupancy & has maintained an average of 97% occupancy since.
The units that were vacated received a spruce up (a mix of new carpet, paint, appliances, etc.) This increased the attractiveness, thus increasing the demand and increased the monthly rent received. All rents have been increased upon lease expiration or termination by a minimum of 3%.
Outcome:
Increase NOI: $22,738/year
Capital Investment: $17,000
Increased value: $200,000 in 1 year.( Based on appraisals )
The owner was able to refinance property and pull significant equity out of building, while maintaining significantly increased cash flow.
