FAS Management assisted the owners of 4228 Benning Road in Northeast Washington, DC, in getting their investment property back under control. The apartment complex was recently taken over by FAS Management from a smaller property management company.
When coming onboard, the FAS team realized that the properties were very affected by the lack of proper management and needed a lot of attention. Here’s how the team at FAS Management was able to take this mismanaged property and turn it into a profitable account.
Billing and Statement Inconsistencies Left Property Owners in the Dark
The owners of 4228 Benning Road had never received statements from the former property management company outlining their expenses and rent rolls.
The owners eventually realized bills weren’t being paid, rentals weren’t being filled, and contractors were being overpaid. The result was huge outstanding balances and not having all the proper licenses for their income property, which was a liability for the owners.
Once FAS Management took over, they were able to turnover many of the units from deficit to profitable units. FAS also began providing the owners with proper statements so they were finally able to see for themselves what was happening with their investments and make decisions accordingly.
The statements from FAS include 10 pages with details along with copies of actual bills rather than just one-page statements with a plus and minus and no real breakdown of what was spent and what came in.
Correcting City Violations and Addressing Maintenance Issues
The FAS team worked to correct a massive amount of violations, including outstanding violations with the city, many of which the owners knew nothing about. FAS took the property from being privately owned and managed to a fully licensed and profitable account.
FAS worked to clean up backlogged maintenance requests and issues that weren’t being addressed and were resulting in unhappy tenants and frequent turnover of the units.
FAS also reviewed the cost analysis of repairs. For example, instead of spending $200 to repair a 10-year-old microwave, it makes more sense to spend $250 for a brand-new one and not spend a few hundred dollars every couple years to repair faulty or outdated equipment. FAS assists owners with looking at the long-term investment rather than a short-term fix.
By fully addressing maintenance issues and securing the proper licenses from the city, FAS revamped 4228 Benning Road by getting violations under control. FAS Management’s work enabled the property owners to build better relationships with tenants so that there’s less turnover at the building, which means more money for the property owners and happier tenants.
4228 Benning Road Is Now Fully Up-to-Code and Profitable Thanks to FAS
In this case, the owners didn’t realize how much they were losing or missing with their property when under management by another company.
While it can be challenging to own and operate an income property in Washington, DC because of their regulations and rent control, the penalties and issues with non-compliance can be severe. FAS is always keeping up with the new and growing DC legislation to get ahead of potential issues and keep the owners profitable.
With FAS’s help, 4228 Benning Road is now fully up-to-code and profitable, with tenants that want to stick around.