4207 Meredith Avenue, a class C multifamily building with 18 units is located in the growing city of Dallas, Texas. Built in 1961, the property is made up of nine one-bedroom, one-bathroom units, and nine two-bedroom, two-bathroom units. Located near major highways, office parks, and the Bishop Arts District, known for its hip entertainment and dining experiences, the building had a considerable amount of unlocked opportunity to increase monthly income.
In previous years, the property was owned by a private owner who hired a resident to act as the onsite manager. The property was later bought by an investment group in Texas who saw that the asset’s potential was not being reached. Motivated by the new technology, creative systems, and high-level operational knowledge MPS Management™ offers, the investment group hired MPS Management™ to take on the management of the property.
Within the first several months of MPS Management™ being hired, the client saw a 20 percent increase in their monthly income. Read on to see how MPS Management™ transformed 4207 Meredith Avenue in Dallas, TX.
Before – 83% | After – 94%
The building had been at 83% occupancy for several months and finding the right tenant was becoming exhausting. After MPS Management™ took over, they consistently marketed the property on over 45 rental sites. After using creative channels such as social media and print advertising, MPS Management™ was brought the building up to 94% occupancy. Within the first month, MPS Management™ filled three out of the four empty units at the property.
Before – Below Market Rents | After – Increased Monthly Income by Nearly 20%
Out of all 18 units, there were no up-to-date leases at the property. Each tenant was on a month-to-month lease and was paying less than market rent. On average, the tenants were paying rents 25 percent below market rate and all rent was collected through money orders. In conjunction with the ownership group, MPS Management™ implemented a lease renewal strategy, negotiating 12-month leases at market price for all tenants. This increased monthly rental revenue by nearly 20 percent and is expected to rise as tenants sign new leases. In unison, MPS Management™ tied in a pet program for tenants who own cats and dogs, creating additional income.
Before – No Scheduled Checks and Maintenance | After – Full Preventative Maintenance Plan
Prior to MPS Management™, there had been no regularly scheduled maintenance checks. Major pieces of equipment such as the chiller and the boiler had not been evaluated in years. As for the units, there were no regular checks for smoke alarms, fire extinguishers, or any of the appliances and plumbing. A recent study by the Building Owners and Managers Association (BOMA), states that property owners should be allocating 4.5 to 7.5 percent of their annual operating costs to preventative maintenance each year. Doing so avoids the heavy costs and hassle associated with major equipment failure. MPS Management™ implemented a full preventative maintenance plan with regularly scheduled maintenance and inventory checks. In the long term, this will save the property thousands of dollars in avoided damage and replacement of expensive equipment.
Built almost 60 years ago, the exterior had never been remodeled. The interiors had minimal improvements made throughout the years but were in dire need of an upgrade. The parking lot was run down and had multiple cars either parked or abandoned in the grass. As for the yard, it was clear that landscaping hadn’t been a priority in years.
MPS Management™ conducted a full-remodel, replacing the building with a new roof and completing a fresh paint job for the exterior. They restriped the parking lot, towed the abandoned cars, assigned parking spots and implemented a towing program with a local tow company. To maintain the yard, MPS Management™ set the property up with a trusted landscaping company. Lastly, in the interiors, they carried out a full rehab by installing new appliances, countertops, and fixtures in the units.
For more information regarding 4207 Meredith Ave, or to learn more about our services, please reach out to Tim Woods.