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Kaplan grows hospitality management business

Wed, 02 Jun 2010 16:30:00 GMT

HOUSTON-After several years of focusing on multifamily property management, Kaplan Management is now expanding its hospitality management business and has recently added a 360-room hotel to its portfolio.

Throughout the 1980s and 1990s, Kaplan Management's portfolio included office properties, shopping centers, mini warehouses, corporate lodging hotels and mobile home parks. It entered the hospitality management business in 1995, but pared down its portfolio and shifted its focus to multifamily several years ago.

Recently, Kaplan Management amplified its efforts to grow its hospitality management portfolio and bring on new clients, according to Zachory Robinson, regional vice president of Kaplan Management. The firm is focusing on travel lodges/motor hotels, extended-stay properties and limited service hotels.

Robinson tells GlobeSt.com that the firm's efforts have already paid off – it recently took over property management responsibilities for Hotel Suites of America, a 360-room conventional and extended stay hotel in Las Vegas that is owned by New York-based Garrison Commercial Funding. Kaplan Management gained the assignment through a referral, according to Robinson.

In addition to the Las Vegas property, Kaplan Management's hospitality portfolio also includes: Christy Estates, a 344-unit hotel in Corpus Christi, TX; Fairwind Corporate Lodging, a 144-unit hotel in Clear Lake, TX; and Ranch at Pinnacle Point, 392-unit multifamily and corporate lodging combo in Rogers, AR.

Robinson says Kaplan Management is looking to build its hospitality portfolio in the southeast (Florida and Georgia), the southwest (Arizona, Nevada and Texas) and Southern California.

2-Jun-10 11:30 AM

5 Steps for Smooth Tenant Relations

Jenna M. Aker — Thu, 20 May 2010 15:00:00 GMT

Though market conditions for multi-family housing continue to worsen, the decline is slowing, according to the Washington, D.C.-based National Multi Housing Council (NMHC). Now’s the perfect time to gain some ground – sharpen your property management skills and attract new renters, satisfy your current tenants, and keep your head above water.

“In these troubling times, professional management of multi-family assets has never been so important,” says Matthew D. Summers, president of management at Houston-based Kaplan Management Co. Inc. If you’re facing evictions, delinquent payments, or other troubling situations, check out these five steps for smooth tenant relations. Your tenants (and your bottom line) will thank you.

1. Excel in Customer Service

“Residents should be treated as if they were living in a five-star hotel,” says Summers. “Unparalleled customer service is the key to having happy residents who stay putand refer others.” Other apartment managers agree. “Nothing can replace a friendly, customer-service-oriented property staff,” says Fran Turano, education and advice specialist for the California Apartment Association (CAA) and on-site property manager at Radio Apartments in San Jose, CA. “People will always need a place to live and call home, and rental property owners and managers will always have the opportunity to provide that to millions of Americans,” she says. Practiced and professional customer service could ensure that renters choose your facilities.

Legislation You Should Know About

Hear what Lisa Blackwell, vice president, housing
policy, at the Washington, D.C.-based National Multi
Housing Council (NMHC), has to say about current
legislation affecting the multi-family housing industry:

“President Obama recently signed mortgage reform
and foreclosure prevention legislation (PL 111-22) that
includes provisions protecting renters of properties
facing foreclosure. The new law requires the
purchaser of a foreclosed property to give renters a
90-day pre-eviction notice. It also allows renters to
remain in the property until the end of their leases,
unless the purchaser occupies the property as a
primary residence, in which case the owner would be
required to give a 90-day notice. The bill also requires
the “immediate successor in interest” of a foreclosed
property to assume any existing Section 8 housing
assistance payment contracts and allow Section 8
renters to remain in place for the term of the lease.

“NMHC opposed the Section 8 provisions in
Congressional testimony in April, arguing that new
owners should not be subject to a contract agreed to
by a previous owner and that imposing additional
constraints on the apartment sector would discourage
investment in rental housing and prevent foreclosed
apartment properties from quickly and easily moving to
new owners. The renter protection provisions of the
law became effective May 20, 2009, immediately upon
enactment. None of these provisions preempt more
protective state and local laws. All of the renter
protection provisions expire at the end of 2012.

“Also, in reaction to the foreclosure crisis in single
-family housing and condominiums, the U.S. House of
Representatives approved mortgage reform legislation
in May that, unfortunately, includes provisions of
serious concern to the apartment sector that could be
used to prematurely force properties into bankruptcy
and then sell them at a lower price to an entity that
guarantees to convert them to affordable housing.
During floor debate on the Mortgage Reform
and Anti-Predatory Lending Act of 2009 (HR 1728),
lawmakers approved an amendment proposed by
Rep. Nydia Velazquez (D-NY) that would allow the
government to intervene when an apartment property is
delinquent, at risk of default, at risk of disinvestment, or
in foreclosure.

“Specifically, the amendment directs HUD and the
Treasury Department to work together to create a loan
modification program for at-risk multi-family properties.
The bill doesn’t target any specific level of mortgage
distress, property condition, or occupancy level, but
gives the government latitude as to when it can
intervene.

“Properties could be subject to government
intervention, including, but not limited to, restructuring
the existing mortgage through interest rate or principal
reductions or other action, transferring of the property
through foreclosure or deed-in-lieu-of-foreclosure, or a
combination of actions to restructure the debt and
ownership transfer.

“In separate action, Rep. Bob Filner (D-CA)
successfully attached an amendment to the measure
that would require apartment owners to notify current or
prospective renters whenever a property is in default or
foreclosure. Importantly, the amendment doesn’t limit
this requirement to monetary defaults, and thus would
include non-monetary defaults, which are often quickly
remedied.

“Although we successfully secured some
modifications to the forced foreclosure amendment, it
remains extremely onerous and we’re aggressively
opposing it. If enacted, not only would it violate the
property rights of existing owners, but it also threatens
to severely curtail lending in the apartment sector.

“We’re also educating elected officials that the
ill-advised notification language will unduly alarm
residents and may, in fact, trigger a foreclosure or
financial stress on a property by discouraging existing
residents from renewing their leases and prospective
residents from signing a lease. Moreover, the
language is not only damaging, but unnecessary, as
state laws already ensure an orderly transfer of
ownership in the case of an apartment property
foreclosure.”

For more information, visit www.nmhc.org.

“Continue to appreciate your residents after they’ve moved in, not just when you’re trying to get them to lease,” says Jenna Varrone, resident relations manager at Colorado Springs, CO-based Sunflower Management. Varrone lists common sense, kindness, patience, and consistency as her keys to handling renter relations. “If you want your residents to respect you, then you must show them respect. I’ve heard too many stories about residents who have been mistreated by their property managers.”

Train your office staff on phone manners, conducting in-person conversations, and showing courtesy, even if it isn’t returned.

2. Quickly Address Complaints

A surefire way to let your tenants know you care is by promptly addressing their complaints, no matter how trivial. “Encourage tenants to come to you with any complaints as quickly as possible,” says Michael Monteiro, former multi-family housing owner and president and co-founder of Buildium Online Property Management Software, Boston. “Provide a number they can call at all hours, and be sure the voicemail greeting includes an emergency number,” he says. Having protocol for how to/who will address complaints will help with expediency and let your tenants know you respect them. “Always make sure you let tenants know when a complaint has been resolved. And, if a complaint can’t be resolved immediately, be sure to let your tenants know that you’re on the case,” says Monteiro.

“Residents expect to be received with a compassionate ear and a receptive disposition. As long as the site staff accommodates this expectation, there are very few problems that can’t be handled at the site level. Those complaints of a more severe ilk, or those involving legal issues, should be referred to a corporate level,” says Summers, who notes that, logistically, written and verbal complaints should receive written responses.

Varrone encourages checking into the origin of every complaint. “Always check every story, because each story will be different,” she says. “If the police were involved, then get a copy of the report. Do what you can to keep the offenders from knowing who complained.”

Not checking into complaints or ignoring them could lead to even bigger problems. “All complaints should be treated with respect and addressed as quickly as possible,” says Turano. “If a resident feels shorted by your lack of attention and response to a complaint, he or she may claim that you’re discriminating against him/her and call for assistance from a fair housing rights organization. That will force you to spend time and effort rebutting the charge. If you can’t prove that you demonstrated the right response, it could result in a significant fine.”

According to Turano, residents whose complaints are ignored might go from great residents to serial complainers, creating more stress for you. Also, legitimate complaints about repairs that aren’t heeded can turn a small leak into a floor replacement, “so it’s wise to find out what the maintenance issue is as soon as reasonable for the benefit of the resident and the property owner,” advises Turano.

3. Document Everything

To avoid legal issues down the road, and for simply setting the record straight, taking the time for thorough documentation is vital. “Without putting the proper documentation in place, you have no
paper trail, and the simplest issues can end up badly if you can’t prove what happened and back it up with the notices you’ve issued,” says Turano.

Here are some instances where documentation is a must:

Scanning and filing copies of rent checks or other payments.
Maintenance checklists signed by witnesses.
Keeping copies of complaints filed by or against tenants.
Having a written record of any notices served (including phone calls made, messages left, notes left on doors, etc.) or any actions taken against tenants.
Any police reports or legal documents that may be necessary or helpful in court.

4. Take Suggestions for Improvement

Keeping your tenants satisfied with your property and its operation is crucial for retention. “Your residents are your income,” says Varrone. “If they’re happy with the property manager, chances are good that they’ll stay with you even if they don’t necessarily like where they’re living.” One way to engage tenants and increase satisfaction is by encouraging and listening to suggestions.

“All suggestions should be genuinely considered and receive a written, well-considered response from the manager,” says Summers, who adds that, if implemented, credit for the idea should go to the tenant or staff person who suggested it. “A good idea can and will come from many places, if you keep an open mind,” says Turano. “Our eyes may see the community in a much different way than a resident’s. It’s always proper to thank residents for their input and mull it over. Some properties actually solicit ideas for improvements from residents. But, be careful what you ask for.”

When your tenants’ suggestions (or your own bright ideas) are worth implementing, go for it. Improvements, however small, will definitely make a difference and increase renter satisfaction and your attractiveness to new renters. “Invest in the property,” says Monteiro. “Many inexpensive improvements can go a long way toward making your tenants happy. Whether it’s repairing a broken light or repainting the hallway, improvements like these show you care while maintaining property value.”

Improving your property and processes can take a small effort or investment and result in big rewards – tenants who stay, new tenants, and welcome community visibility. Turano suggests “having a community that has great curb appeal (professional landscaping, fresh paint, clean pool area, etc.), which makes the property feel warm. Other amenities, such as in-unit washer/dryers, as well as information about nearby access to shopping and parks, are highly desirable.”

Monteiro suggests incentives as a great way to retain tenants. “Sometimes leaving rent alone is incentive enough,” he says. Resident retention events, according to Summers, also do the trick. “These range from pool parties to barbeques to holiday functions. In our portfolio, we take this one step further and host a resident event once per week. This includes Taco Tuesdays, Breakfast on the Run, Neighborhood Watch, Pizza Night, and other events.” Summers also mentions that, while the events may appear unremarkable, leasing prospects are invited to the weekly events and encouraged to come back to tour the property or try out the swimming pool – a strategy that greets prospective renters with a sense of community and attractive amenities from the get-go.

Move-in specials, says Varrone, also attract residents. “So do lower deposits. Incentives to keep residents renting really help at renewal time,” she says, outlining Sunflower Management’s recent renewal special, which included gift certificates or cash. Wallace S. Gibson, founder of Gibson Management Group Ltd., Charlottesville, VA, says the key to attracting new renters is “a very good Craigslist ad posted daily on a rotation so that the property is presented online – even on the weekends. Move-in specials and a good, well-maintained website with floorplans are also a must.”

Having an up-to-date and positive Web presence is important for catching the eye of new renters. “Social media is the key to first-time renters,” says Gibson. “Maintaining a presence in that arena is important.” Monteiro advises using your website to make things easier for current tenants. “For example, instead of making your tenants pick up the phone, let them report repair items online. Instead of making them mail their rent checks each month, let them pay electronically,” he suggests.

5. Stay Professional

More Resources

Check out 12 Eviction Mistakes That Can Sink You, aswell as other helpful articles, at the AmericanApartment Owners Association (AAOA) website.
The “Background Papers” under the California
Apartment Association’s (CAA) Reference Library arefull of helpful research.
The National Apartment Association gives you accessto tons of industry information under its Industry Resources section.

Keeping your head in a go-go-go profession is one of your greatest challenges, especially when you’re facing evictions. “Property management is such a fast-paced occupation that it takes almost nothing to become overwhelmed,” says Varrone, who urges apartment managers to do everything they can to prevent evictions. “If it means making a payment plan with the resident to save the owner from the cost of the eviction, then do it. I try as hard as I can to use eviction as my last resort. If you can sympathize with the resident, even better – they want to work with you and pay you whatever they can if you can understand their situation.” Varrone states that starting the collection process early is key. “You can’t let them get more than a month behind. Otherwise, there’s really no chance of them getting caught up.”

Summers finds that the challenge in handling renters is “enforcing contracts in a consistent and universal fashion while empathizing with the unique financial conditions of individual residents.” Using too much latitude, he finds, “generates more delinquency and invites allegations of discrimination or favoritism. Consistency and universal application of policy deters late payment and prevents troubling allegations.”

Being prepared for trouble is wise. “Partner with a good law firm that’s knowledgeable in landlord, tenant, and eviction procedures,” says Gibson. “Have on-site personnel work with paralegals to serve notices and file court paperwork, and make sure lease wording allows for collection of legal and court costs so that, if the tenant pays, the charges of the law firm are paid before the court paperwork is filed.”

Monteiro says to make sure the law is on your side at all times. “Check your state and local laws before beginning any eviction. Remember that tenants have rights, too. Although you may be tempted, it’s never okay to move a tenant’s belongings out of his or her apartment without serving the eviction through proper channels, which requires a certain timeframe that will be dictated by state or local law,” he says.

Through the drawn-out eviction process, or even with simple squabbles, it’s important to retain your composure. “Stay cool and professional when dealing with an angry resident,” advises Turano. “I think you need to remember that each day and each incident is an adventure in wearing many hats. This job requires being fast on your feet. You do this by making the right business decisions and giving every resident the chance to create a nice home for him/herself by taking certain responsibilities for how his or her renting experience turns out.”

20-May-10 10:00 AM

Night Watch

Sat, 01 May 2010 05:00:00 GMT

When colleagues find out that I had a career in law enforcement before entering the multifamily profession, I am inundated with many questions concerning very important police related topics in

the multifamily industry – like traffic tickets.

While I am always willing to bring my 17 years of policing experience to bear on these complicated inquiries, in truth it causes me to wonder why there is such a huge disconnect between multifamily owners and managers and the law enforcement community in general. It seems as if we operate in two different spheres of life, only meeting each other at the point of crisis.

And what of the “quasi-law enforcement” roles of courtesy officers in our communities? Do we even know who these folks really are and what they are supposed to be doing for us?

CASE STUDY

In 2006, a retired military veteran was shot at a South Houston apartment community after chasing two men who had broken into his daughter’s apartment. This was a Class A community, gated, well lit, with excellent staff, crime watch meetings, resident screening by a reputable agency, notices to residents of crime issues, and a courtesy officer. Few problems happened in this community

before this incident and even less after. The lawsuit, however, settled for $375,000.

It could have been worse – both for the father that survived the gunshot wound to the abdomen and for the community who could have lost millions. But the crux of the matter in that incident and for this article is, “Do you know what your courtesy officer issupposed to be doing, what he is actually doing, and produce his written patrol logs”? If not, read on.

A DEFINITION

Courtesy officers are typically commissioned police officers from local municipalities or jurisdictions that are given free rent in exchange for services rendered to the community. The fact that the officers are “commissioned” means, in a nutshell, that they have the governmental authority to arrest; they are full-fledged police officers. They are not employees of the ownership or the management company, but instead are rendering a service in exchange for a rental discount.

With courtesy officers, the property has the benefit of commissioned police officers, with police cars, living on site and rendering services to the community. Many communities host courtesy officers in lieu of contracted security as a more effective and less expensive method of addressing safety issues in a community. Given this, let’s start with asking the question, “What are courtesy officers supposed to be doing?”

HIGH-VISIBILITY PATROL

Properties with courtesy officers provide a greater risk of identification and capture as perceived by criminals. When considering the prudence of engaging in crime on a property, then, the presence of courtesy officers influences those decisions. This deterrent effect exists only when criminals know that courtesy officers are present. High-visibility patrol, therefore, is essential to facilitate deterrence.

In this regard, courtesy officers should be seen by residents and criminal alike, and make their presence known to as many individuals as possible.

The single most important function of a courtesy officer is high-visibility patrol because it serves to deter the criminal element from entering a community and engaging in illegal activity. Patrol activity, then, should concentrate on the common areas of the community including the vicinity of entrance gates, mailbox areas, laundry facilities, breezeways, parking lots, and other similar areas where courtesy officers will be seen.

In contrast, covert patrol techniques may aid in the apprehension of criminals but provide significantly less deterrence of crime. The overriding effort in our communities is to prevent and deter crime – not capture crooks after our residents have been victimized.

PHYSICAL SECURITY CHECKS

While engaged in highly visible patrol, regular and sporadic verification of the security of the business office, the maintenance shop, pool gates, motor vehicle and pedestrian gates and other physical structures should take place. Courtesy officers are also tasked with verifying the physical security of the facilities and should be shaking doorknobs as a routine part of their job.

During physical security checks of the grounds and facilities, courtesy officers should also pay particular attention to lighting issues and locking device issues. They should be the primary source for work order requests for light bulb replacements, inoperable photocells and street lamp issues. They should take particular notice of soffit lights, stairwell lights and other lighting issues that present a safety risk to residents and guests as well as functional lighting that helps deter crime. They should notice defective pedestrian gate locks and latches, pool gates that do not swing close and latch properly, laundry facilities with loose knobs and locks, and other similar items.

Courtesy officers are tasked with the physical security of the community and need to engage in these tasks, not looking for people to arrest.Courtesy officers should also be task ed with evening lock-up of laundry facilities that are not open 24 hours to residents, shutting down the pool and locking the gates at a reasonable hour and closing and activating motor vehicle gate sensors if the gates are left

open during the evening to accommodate homeward bound residents.

CALLS FOR SERVICE

Most law enforcement agencies have specific protocols on officer involvement in police activity while off duty. Some strictly prohibit it. Others permit it within a limited scope. Those agencies that do not permit officers to become involved in police activity while off duty relegate courtesy officers to “professional witnesses” of sorts. They observe and report to on-duty police officers who handle police patrol activity. Those agencies that permit off-duty involvement allow courtesy officers to take point on most patrol level activity within the confines of the property. Management should have a clear

understanding of what officers are permitted (or not permitted) to do while off duty and engaged in a courtesy officer’s role. Management should support agency procedures, not demand that officers defy them.

With regard to resident calls (taken from an answering service, pager or management) for such items as loud music, disturbances or other violations of community regulations, courtesy officers act on behalf of management. After making contact with residents, they should inform them of the appropriate community policy at issue and request compliance. If residents fail to comply, it should be reported to management for appropriate civil action.

Unless the behavior rises to the level of a crime, courtesy officers should understand that they are not tasked with enforcing community regulations. Those courtesy officers that confuse this will alienate themselves from the residents, prompt complaints to management and make the issue their behavior instead of the community policy violation that was the source of the initial complaint.

Vindictive residents are also known to file complaints against officers with their respective departments with the specific purpose of launching an administrative/ internal affairs investigation.

The overriding perspective for courtesy officers is that they are in the community to help the residents, not police them. If this attitude guides their actions, courtesy officers become well liked, are treated with respect by residents and gain useful intelligence about the community that aids management and local law enforcement.

WRITTEN REPORTS

Most police officers loathe paperwork. Unfortunately, it is a component of good policing and absolutely requisite for courtesy officers. Courtesy officers must maintain written patrol logs that detail exactly what they do, the contacts they make with residents and the facility checks they perform. Written patrol logs should include lighting observations, the status of pedestrian and motor vehicle gates each shift and other information that documents that they are both physically present in the community and that they are doing their jobs. These reports are the “eyes and ears” of management in the community. If management does not require courtesy officers to provide this information, daytime staff will remain blind to afterhours activity and have no method to retroactively establish the

scope of services being provided to the community.

In short, how do you know that your courtesy officers is doing exactly what he or she is supposed to be doing if you do not require or maintain written reports? Written patrol logs per each officer per

each shift is a non-negotiable aspect of hosting a courtesy officers. These reports should be placed in a three-ringed binder and preserved for a minimum of three years.

A community courtesy officer should also be tasked with the acquisition of crime statistics for the community and the surrounding area. These statistics should be placed in the binder on a monthly basis. Routine checks for registered sex offenders should be instituted and the results of these queries should be included in the binder on a monthly basis. Copies of fliers notifying residents of crimes taking place in the community should be included in this binder. Copies of Neighborhood Watch meeting agendas and attendance rosters should be maintained. All crime information relative

to the community should be included in this binder and made available to anyone – prospect or resident alike – to inspect and review as they desire.

CONCLUSION

This article heralds a call to my colleagues to examine the role and function of courtesy officers in your own communities and to begin actively managing them for the benefit of owners, managers and residents alike.

In the 2006 shooting mentioned at the beginning of this article, the victim’s counsel gained some traction over the fact that written reports were missing, that no job description existed of any sort that defined the duties of the courtesy officer and that the courtesy officer was not on duty at the time the shooting transpired (approximately 7:30 p.m.). The off-duty courtesy officer did, however, arrive in the community immediately after the incident, rendered aid and assistance to the situation and provided eyewitness testimony of site conditions and protocols at the time of the incident.

The question that arises, however, is what if the officer were no longer employed with the community? What if he were no longer employed with the same police department and could not be located? What if that eyewitness testimony were no longer available? What documentation would have existed in speak on his behalf?

It is critical that owners and managers have a clear understanding of the duties of the courtesy officer, verify that those duties are being performed and preserve and maintain written documentation of it. This should be a corporate – not a site-level – responsibility given the gravity of legal repercussions for failing to do so.

Matthew D. Summers is president of management for Kaplan Management Company. For more information, contact him at MSummers@KapCorp.com or visit www.KapCorp.com.

1-May-10 0:00 AM

Kaplan Gives Veterans A Hand Up with Low Cost Housing

Tue, 01 Dec 2009 06:00:00 GMT

“It is these sorts of efforts that foster the sense of neighborhood we try to create in contemporary management,” he said.

Looking to boost its civic involvement company-wide, Kaplan Management began considering new ways to give back to the community early in 2009.

“As a veteran, I thought of our U.S. military personnel and our war veterans – a group that is often overlooked but is in dire need of assistance,” said Summers.


Left: Matthew Summers and Michael Kaplan of Kaplan Management accept a token of thanks from Vernon Bagley, president of Project We Remember. Right: Lucy Kiley, Bez Vasquez, Michael Kaplan, Matthew Summers, Michelle Rhone, Darlene Hunter, Jamila Ross, Ginger Posey and Shelly Carrillo.

Enter Project We Remember, a non-profit organization dedicated to raising funds for U.S. military veterans and their families. Project We Remember would identify deserving veterans who would be awarded rent-free apartment homes in one of the properties Kaplan owned, operated and managed.

Kaplan officially rolled out the partnership with Project We Remember during the grand opening of The District at Mountain Vista in Mesa, Ariz. Public officials and military personnel were invited to participate and make remarks, and an Army veteran and his family moved into an apartment unit that same day. Media covered the event, which was well received by the community.

Because of the program’s success in Mesa, the Kaplan executive team decided to extend its partnership with Project We Remember across the company’s entire portfolio. September 11 was selected as the date to recognize this commitment, and Kaplan donated apartment homes in four of its Houston-area properties: Westcreek, Parkside, Breakers at Windmill Lakes and Stone Mist.

Vernon Bagley, executive director of Project We Remember, met with social workers at the Michael E. DeBakey Veterans Administration Medical Center to identify veterans with short and long-term housing needs. Some veterans travel long distances to the VA Medical Center because they require chemo or physical therapy but cannot afford to put themselves and their families in a hotel for an extended period of time. Some of the donated units will be used in these cases. The other units may be used for veterans, identified by the VA Medical Center, who have longer-term needs: those who are homeless or find themselves suddenly unemployed or are just returning from combat.

Kaplan plans to extend its collaboration with Project We Remember in the spring to include its portfolios in Dallas, Fort Worth and Arkansas and hopes to extend the effort even further.

“We are also actively recruiting the ownership of our fee-managed assets to participate in the program and plan to work with Project We Remember to find veterans in similar circumstances that could use a hand up,” said Summers. “There are many emotional and physical issues tied to military deployment, and many veterans need time to readjust to civilian life. With Project We Remember, we’re helping to make that transition a little easier by providing veterans with a low-cost place to live to help them get back on their feet. All of us at Kaplan Management are honored to help our veterans find a place called home.”

1-Dec-09 0:00 AM

Dotting All The 'i's: 'No shortcuts' is the unwritten rule at apartment complex operator

Teresa Talerico — Fri, 06 Nov 2009 06:00:00 GMT

Mike Kaplan doesn’t believe in shortcuts. Whenever he’s taken one — for example, failing to call every reference on an applicant’s résumé, or accepting the lowest bid without researching all the contractors — the decision has come back to haunt him.

As a result, an unwritten rule at Kaplan Management Co. Inc., which operates apartment complexes throughout the Southwestern United States, is “no shortcuts.” That means taking the time to do things right, whether it’s holding weekly conference calls to keep investors in the loop, honoring a 48-hour maintenance guarantee or inviting police to set up shop in a few apartment units to help reduce crime.

“We are always consistent, we are always diligent, we do not take shortcuts,” Kaplan says. “I used to take shortcuts early on in my career because I’d get busy. And every time I did, it bit me. So ... I just started paying more attention to the details and the process and, all of a sudden, my operations started getting more organized, smoother; my employees were happier, my clients were happier.”

Sticking to simple, yet time-tested, philosophies has kept Kaplan Management in business — and growing steadily — since 1978. Th rough the years, the Houston company has been involved in development and commercial real estate. Its bread and butter, however, is third-party management of multifamily residential properties. Th e company, which is headquartered in Houston, currently manages 22 such properties in Texas, Arizona and New Mexico.

Kaplan says he hopes to as much as triple the company’s portfolio — from 6,500 to 20,000 residential units — by next summer. He also plans to expand back into states where the company has previously managed properties, such as Nevada and Florida.

Th ose strategies were sparked, in part, by the real estate slump and economic recession. However, Kaplan and his team had already been planning to step up that side of the business when fi nancing began drying up for new development.

“We had been talking about expanding our third-party management services for a long time,” Kaplan says. “And when we saw the opportunity to do it — because we had more time available — we really started focusing on it.

Today, multifamily management makes up almost all (97 percent) of Kaplan’s business. Four or fi ve years ago, it constituted only 60 percent; the rest was devoted to development.

“He’s adapted,” says Texas Capital Bank Senior Vice President Gary Karter. “He understands that everything doesn’t always stay the same, and you’ve got to move with the times and change with the times.”

Karter says he has known Kaplan since 1974, when he became Karter’s banking customer. Th at same year, Kaplan also began working for Th e Finger Cos., a wellknown company in the apartment-development business.

Kaplan spent the next four years learning the ropes at Th e Finger Cos. There, he developed skills and business philosophies that would stay with him for years.

“I got terrifi c exposure from them, the fi nest training available — a strong, strong work ethic,” he says.

He also cultivated enough contacts to start his own company.

“(Th e fi rst year) was a very profi table year because I was picking up management accounts and I was building a 170-unit condominium project off South Braeswood. ...I almost immediately started generating income and business.”

But challenges were imminent. Among them was the fi nancial crunch of the 1980s, when tenants started bailing out of Kaplan’s retail properties, which were located
from the Carolinas to New Mexico.

Kaplan says he survived thanks to hard work, honesty, accountability and transparency.

“I went into the banks and told them, ‘Hey, we’re having trouble; I need help,’ ” he says. “We were able to come up with workout plans so we could dispose of these
troubled assets.”

Today, as the economy recovers from the latest slump — and residential customers begin asking for services managing their commercial assets — Kaplan Management
will revisit that market.

“We certainly have the expertise, so we’re going to go back into it to service our clients,” he says.

Kaplan says longevity and dedicated employees have helped the company weather various economic cycles.

Karter agrees.

“It’s their personnel and extensive hands-on ability — Michael and the people he has in the company and their extensive experience,” Karter says. “He’s been doing this for 35 years or more. Th ey know what they’re doing.”

Karter says Kaplan has created a workplace that values employees and treats them like family. Th e CEO has even inspired his workers to adopt one of his favorite
habits — writing nearly every detail of their workday in brown, 100-page notebooks embossed with the KMC logo. Kaplan learned this technique at Finger, and he keeps a stash of the notebooks in his office.

“I do that because it says two things, in my opinion, to the employee: that I’m available, that you can walk into my office, (and) that I’m not any more special than anyone else who works here,” he says.

Kaplan Management also employs some relatively unorthodox policies — all spun from the same principles of honesty and transparency. For example, the company holds weekly conference calls with investors and partners to keep them informed about business activities.

Kaplan Management also maintains a civic commitment in its various communities, whether that means sponsoring a Little League team or hosting a charity event. Th is spirit of community is one of the company’s hallmarks.

“To grow a business, you’ve got to understand the strengths of your business and you’ve got to constantly make them better,” Kaplan says. “And we don’t stop that. We constantly work on being better at what we do.”

Th at includes honoring a maintenance guarantee at all of its apartment complexes. It guarantees that all work orders will be completed within 48 hours.

“It’s sort of unheard of in the industry right now,” says Matthew Summers, Kaplan’s president of management.

More than half of the company’s properties are older locations that, in the wrong hands, could easily deteriorate. Kaplan says his team — which includes a corporate
offi ce in Phoenix and regional offices in Arkansas and Dallas — has developed a reputation for keeping these properties in tip-top shape.

“A lot of times on these older assets that we get assigned, the previous owner wasn’t cutting the grass as often, (or) there were carpentry repairs needed,” he says. “It’s not that we go make these buildings like new, because that’s not what they need; we just properly maintain them and keep them neat and clean and take care of all the life-safety issues and make sure the driveways are clean and the asphalt’s repaired.”

Th e company also tries to reduce crime in certain neighborhoods. Kaplan works with police in those areas, even giving them apartment units to use as stations.

“Th ere’s a lot of folks who don’t make much money who need a safe, habitable, well-maintained environment. We provide it,” Kaplan says. “We’re very concerned about providing as safe an environment as we can.”

Above all, he says, the company is accountable for all of its actions.

“If we screw up, yeah, we’re going to make a mistake, but, boy, we’re going to go tell you and we’re going to go fi x it,” he says.“We don’t cover up or make excuses.” ■

6-Nov-09 0:00 AM

KEEP 'EM HAPPY: Satisfy and retain your residents by providing an efficient and effective response to maintenance requests.

Matthew Summers — Sun, 01 Nov 2009 05:00:00 GMT

One of my most vivid memories of apartment living is an ice-cold drip that rolled down my back each morning when I showered. (The air conditioning condensation overflow line in the ceiling above the shower was doing its job.) I don’t remember the move-in special I received, the view from my apartment or the quality of staff in the office. The only thing I remember is that ice-cold drip down my back when I showered- a drip that took a week to fix.

I assume the site staff didn’t think this drip was important. In the grand scheme of things, it probably wasn’t. I am confident that the property ran 50 to 60 work-order tickets per week. They had floods from broken supply lines to extract, defective appliances to replace on third floors and 20 units to get ready for move-ins. A pesky drip from a condensation line really wasn’t that important and could put on the back burner until they had time to address it. No big deal, right?

I called on a Saturday, and no one returned my call. I called on Monday, and they said it would be fixed by Tuesday. No one showed up on Tuesday, so I called on Wednesday and was told it would be Thursday. On Thursday, it would be Friday – without fail. Someone showed up on Saturday to spend two minutes blowing out the main condensation line which fixed the problem.

Wow. That was simple. Except four years later, I still remember the condensation line and how long it took to get fixed.

MAINTENANCE MATTERS

Anyone who has been in multifamily housing for any length of time knows that this sort of story is not new. Residents typically have a list of gripes concerning maintenance, some valid and some not. If they don’t, it is rare and to be commended. Ask most residents about maintenance, however, and they will cite a problem and the agony they went through to get it fixed. It doesn’t matter that the problem was from 1982 – they still carry the grievance and are more than willing to share it with anyone who will listen.

Owners and investors rely on management professionals to deal with the intricacies of resident issues. Corporate executives depend on the stewardship of regional supervisors to ensure that affairs on properties are quietly handled. And regional supervisors expect the site staff to deal with resident issues with finesse and professionalism.

If that’s the case, what exactly are we doing to help the site staff deal with this tumultuous dynamic? Do we train our staff to understand what enrages a resident when work orders are not completed? If not, how do we expect them to excel?

CONSIDER THE CUSTOMER

During my years of on-site management, I learned much about residents. A law enforcement background prompted me to pay attention to what they say, how they say it, and what they seem to mean. I offer the following for your consideration:

If you placed 100 people in a room and asked who was a better college football team – the Aggies or the Longhorns – I suspect you would probably provoke an argument (if not an outright fistfight). Democrat or Republican? More differences. Chocolate or vanilla? Paper or plastic? You would probably see further differences of opinion as well.

If you asked everyone in that same room whether they believe they are entitled to be treated with civility, common courtesy, dignity and respect, I suspect you would find a universal show of hands in agreement. Most people reasonably believe they are entitled to be treated with dignity regardless of the forum.

Place these same people in a situation where they are a patron, customer or resident, and they believe dignified treatment is specifically required. A person’s standing as a resident, for example, demands that he or she be treated with the utmost respect and dignity. After all, they are exchanging something of real value to them (their hard-earned wages) for a service that they expect to be at least as valuable as what they pay.

EMOTIONAL ELEMENTS

If we assume that this is true, then let’s consider the raw emotional reactions of residents concerning incomplete maintenance items: When the completion of a repair request is postponed, delayed, put on the back burner or otherwise forgotten, the initial reaction of the resident is a feeling of annoyance. He or she is purely annoyed by the continuation of the inconvenience. If this were the limit of his or her reaction, it would be relatively easy to remedy: Quickly fix the problem and the annoyance dissipates.

Unfortunately, annoyance quickly escalates into indignation. The resident views the timely payment of rent as an exchange for the timely repair of problems in the apartment. When repairs are ignored or delayed, it creates a perception of inequality. This perception is why we all have experienced a resident who threatens to withhold rent because of unattended work order requests. Indignation develops in direct proportion to how the resident defines “timely” repairs and regardless of legal or contractual definitions.

Annoyance and indignation are soon overshadowed by the resident becoming offended. More than a simple annoyance or a feeling of inequity, he or she perceives that the problem is not being taken seriously by the site staff, that no one is making an effort to provide assistance and that his or her value as a rent-paying resident is being minimized. This feels offensive to the resident, who now feels that he or she is not being reated with any sort of dignity. Once a resident becomes offended, problems are not easily resolved.

Under the cloud of these emotions, a resident becomes a powder keg. Most of us have seen what happens when you put this resident in front of a snippy leasing consultant, a bored assistant manager or a disingenuous manager. Fireworks, right? Try pointing out the fact that a request was not “in writing” and see where it lands you. The regional manager, the corporate office and the ownership will be summoned by the resident, who will cause as large a ruckus as possible and demand financial restitution..

BETTER MANAGEMENT, BETTER MAINTENANCE

So how do we handle these sorts of problems? The key to effectively managing residents is not a four-hour training program on crisis management, anger management or hostage negotiations. This situation is a management issue with a preventative management solution. Just as leasing, collections, delinquency, renewals and expenses need to be managed, so too does maintenance. Effective stewardship of a property includes maintenance, which means more than making certain that the property is clean and ready units are available for leasing. Effective maintenance management should include, at minimum, the following five preventative fundamentals:

1. Cooperation: When residents call, inform them that all work order requests are typically completed the same day but may take up to 48 hours to complete at the latest. Do not promise they will be completed any sooner unless you have a solid understanding of the current maintenance workload. Explain that regardless of how much we try to avoid it, work order requests sometimes get misplaced. (Yes, I am suggesting you be honest with your residents).

Ask the resident, as a courtesy, to help you out and specifically call you back should the work not be completed within 48 hours. Doing so will help you ensure that the work order gets top priority and will be completed immediately if it is missed. Most of the time work orders will be completed long before a follow-up call from a resident. In the event that a ticket is missed, however, the resident will call. This will alert you to a problem and give you the opportunity to apologize, move the ticket to the top of the list of pending work orders and remedy the problem immediately. Residents typically do not mind being part of the process and appreciate the honesty and candor.

2. Cumulative Counts: Each maintenance technician should be given a finite number of tickets to complete during the first half of the day. Before leaving for lunch, they should turn in completed tickets. If eight tickets were given to a technician at the start of the day, all eight should be reviewed before lunch. Not only does this keep completion information current, but it holds the technician accountable for the volume of work he or she is producing. The same procedure should be repeated for the second half of the day. Dropping a stack of tickets in the lap of a technician without tracking what goes out or comes back is an open invitation for a visit from a justifiably unhappy resident.

3. Completion Confirmation: Residents' work order requests should never be closed as completed based upon the word of a maintenance staff member. That’s right – the resident certifies that the work was completed, not the maintenance man. A resident signature verifying completion is very common when he or she is present at the time the work is done. A telephone call from an office staff member confirming the completion is also valid. Either way, the protocol helps avoid situations where someone thought a work order request had been completed when it was not.

4. Courtesy Communication: Any time a work order request will not be completed as planned, a courtesy communication must be made to the resident, whether by voice mail, e-mail or note taped to the door. Provide something that alerts the resident to the delay, explains why, offers an apology and indicates when the work will be completed.

When we speak of treating residents with dignity, this is an absolute must in terms of common courtesy. Have you ever waited on the cable guy to arrive between 8 a.m. and noon and he fails to show without explanation? Residents deserve the courtesy of being informed of any known or anticipated delays.

5. Kindness Call: Every completed work order request is an opportunity to facilitate resident retention. Telephone calls from staff members to your residents regarding the completion of work orders tells a tale about the community. It tells your residents that everyone is paying attention to them and that the staff is concerned that they had a problem. It demonstrates that you value them as residents and that you are genuinely concerned that they are being treated with dignity. More than resident retention parties, seasonal events, concessions or prizes, these telephone calls are the single most effective way to retain residents.

One of my core beliefs in property management is that people are our purpose, not our problem. Our work needs to be completed in a fashion that evokes pride in the service we provide and underscores the value we have for each of our residents. Including the five key elements listed above in any maintenance management program will reduce, if not eliminate, resident complaints over maintenance-related issues.

Matthew Summers is president of management for Kaplan Management Company. For more information, visit www.kapcorp.com.

1-Nov-09 0:00 AM

HITTING BACK HARD: Gulf Coast states provide opportunities for experienced property managers

Darnell Little — Wed, 01 Jul 2009 05:00:00 GMT

For the past two decades, the Gulf Coast states of Texas, Louisiana, Alabama, Mississippi and Florida have been at the center of a demographic explosion, with population rising dramatically.

That population boom, led mainly by Florida, also drove tremendous economic growth with businesses and real estate development. But the credit crisis and deep recession have hit all regions of the United States hard, including the Gulf Coast.

Thanks to weakening global demand, the energy industry—responsible for nearly half the Gulf Coast’s economic activity—is currently contracting. This in turn is causing a spike in unemployment throughout the region, only compounding the problems for the areas that were hardest hit by Hurricanes Rita, Katrina and Ike.

Despite the challenging environment, the Gulf Coast is ripe with opportunities for property managers. Some coastal areas in Texas, Mississippi and Louisiana are now recovering from recent hurricane disasters and are undergoing major developments. Alabama’s coastal areas are moving from the category of hidden gems to that of major destinations for coastal dwellers.

Although these areas are struggling overall under the current recession, the downturn only makes the need for experienced and savvy property managers all the greater: Asset holders require the steady and knowledgeable hand of a seasoned property manager to maximize the profits from real estate holdings.

CARVING OUT A NICHE

According to Matthew Zifrony, a director with Tripp Scott law firm in Fort Lauderdale, Fla., delinquency rates continue to rise across South Florida as condominium associations struggle to pay their bills.

“More properties across South Florida are becoming dilapidated because residents are abandoning them,” Zifrony said. “And the condo associations don’t have the money to deal with the problem.”

Along with rising vacancies and foreclosures, South Florida is experiencing a record number of bankruptcies and growing unemployment.
But surprisingly, many real estate experts say the environment is ripe with opportunities for the enterprising property manager willing to work in such a challenging environment.

“It’s a great time to be in property management, if you can run a small operation on a tight budget,” said Michael Sichenzia, chief operating officer of Dynamic Consulting Enterprises, LLC, a Florida-based loan modification firm.

“A property manager can carve out a niche and compete on price and service,” Sichenzia said. This allows the property manager to compete for business with homeowner associations and smaller real estate developers who need the expertise and experience of a seasoned property manager to handle real estate assets in a tough economic environment.

STABILIZING ASSETS

Matt Summers, president of Houston-based Kaplan Management, agrees. The national recession has shaken Houston’s economy. Multifamily, condominium and office markets in Houston are all down and new real estate development has slowed to a crawl. So realestate holders are looking for property managers who know how to squeeze the most dollars out of their assets.

“In a downturn, there is a big disparity between those who know what they are doing and those who don’t.” Summers said.

Summers has recently noticed that equity lenders who invested in real estate and planned to flip properties quickly are finding themselves having to manage those assets. They are now looking for professional property managers to run their portfolios. In particular, they prefer boutique management companies with property managers who can pay more attention to their assets.

“A site manager is the key to the success of a property,” Summers said. “In a period like this, you must have extensive experience in the field.”

Summers also said that customer service becomes more important in a downturn. He believes that a common mistake asset holders make is to cut customer service during difficult economic times.

“You can’t give substandard service to residents,” Summers said. “I want a property manager with an engaging personality who does well with people. [He should be] sincere and bright at the same time. If residents are happy, you stabilize the asset…and they don’t move.”

NOT THE NORM

If there’s one special case in the Gulf Coast area, it is definitely New Orleans. Hurricane Katrina destroyed an enormous amount of housing stock in the area, causing massive de-population. Some of that housing stock is starting to come back online now, thanks to aggressive financing both in the commercial and governmental sectors. The result has been continued development even during the downturn.

“In Florida, for-sale signs dot the coast from one end to another, but we have a lot of construction going on here, especially for apartments,” said Richard Juge, a RE/MAX commercial broker in Louisiana. “We’ve had good growth the last few years. Not a lot of speculative builders but relatively healthy investors.”

Still, the retail and office markets in New Orleans are experiencing higher vacancies, and condominium development has slowed recently. Despite the positive indicators, New Orleans remains a tough environment in which to operate. A lot of uncertainty exists about the extent to which future development will continue in the area. And the city’s exposed vulnerability to natural disasters is giving some former residents and business owners pause about relocating back to the area.

According to Juge, however, a market downturn is a win for property managers. For those developers who have made the decision to return, the experience of a working with a good property manager is crucial to the success of any real estate asset.

“Never underestimate the value of a property manager when it comes to retaining customers,” Juge said. “As the market sees higher vacancies, the property manager becomes more important.”

1-Jul-09 0:00 AM

Create Community

Matthew Summers — Mon, 01 Jun 2009 14:00:00 GMT

Efforts that make your property feel like a close-knit neighborhood will help you retain residents year after year.

By MATTHEW SUMMERS, Kaplan Management Co

In today’s multifamily environment, residents are looking for more than a place to hang their hats. They want more than just an apartment in exchange for their rent. Most residents are looking for a community – the neighborhood atmosphere of yesteryear. In addition to a nice, safe place to live, residents want social opportunities – events, parties and other gatherings. While they may not attend all of these activities, they still want them to take place. As with many amenities, residents simply want them at their disposal.

Retention Strategies

To foster a sense of community among residents, conventional wisdom has the management staff hosting activities that can include anything from a pizza party to an annual barbecue. Seasonal parties are sometimes tossed into this mix, but as a general rule, events take place on a monthly or bi-monthly basis. However, many managers believe their limited marketing and property promotional budgets are better spent on advertisements and other vehicles to drive people to the property. When expenses need to be cut, these residential activities are viewed as extras, not necessities. Thus a strategy that initially attempts to retain residents by fostering a sense of community can degenerate into one in which residents are retained by being “extra nice.”

This is a mistake and can be devastating to a property. Residents can become dissatisfied, and the number of notices will rise. More concessions will be made to stave off move-outs. If turnover increases, the costs associated with making units rent-ready increases. In short, performance can suffer, and what was seen as a way to reduce expenses can, in effect, increase them a hundredfold.

MARKET YOUR RESIDENTS

Resident retention activities are not only vital for existing residents, they also serve as a tremendous marketing tool for a well-trained staff. Weekly resident events – and the community spirit that they promote – can become the one factor that distinguishes one property from another.

Imagine a leasing consultant asking a prospect, “What are you doing Saturday? Any plans? We’re having a pool party here, and we’d like you and your family to come. It’ll be a blast! We’re having hamburgers, hot dogs, chips and sodas. We’ll have music, and the pool will be open, so why not bring your family and some friends and join us? It’s for residents, but this would be an excellent chance for you to meet some of the people who live here and check us out.”

Or what about telling a prospect, “Any plans for Tuesday? We are having our Taco Tuesday, where we cater dinner for our residents. Why not stop by with your husband and kids, eat dinner with us, tour the property, rub elbows with some residents and really give us a hard look?”

What better time for a prospect to walk into your community than when your staff is hosting a resident activity? The residents who attend these activities are typically very friendly with the staff, like the community and will do their part to tell prospects how much they love the property. Isn’t this exactly what we are trying to convince prospects that we have? Isn’t this the sense of community they seek?

MAKE YOUR RETENTION EFFORTS WORK DOUBLE TO BRING NEW LEASES

Leasing consultants should be armed with a schedule of weekly events. Every prospect who crosses the threshold of the business office should be invited to these activities. These events not only establish the sense of community desired by existing residents, they serve as an example of what future residents may expect from the property.

In these tough economic times, when stewardship of assets is subject to increased scrutiny, managers need to look outside the cookie-cutter management techniques that have been cloned throughout our industry. Innovation and vision are needed at times like this. Unconventional results arise from unconventional efforts.

Matthew D. Summers is president of management for Kaplan Management Company. Kaplan has managed multifamily properties and owned, operated, renovated and developed projects for 30 years, specializing in fee management, development as well as acquisitions. Current holdings stretch across Arkansas, Texas, New Mexico and Arizona. For details, visit www.kapcorp.com.

1-Jun-09 9:00 AM

Local groups help veterans get back on feet

Mon, 11 May 2009 14:45:00 GMT

Chris and Corina Esquivel talk about
moving into their new apartment at
The District at Mountain Vista in
Mesa. Esquivel is one of five
veterans who will live in the new
apartment community for free for the
next year thanks to Project We
Remember and Kaplan
Management Co.

Tribune

A U.S. Army veteran of the Iraq war and his family are getting a new place to call home after losing their house to foreclosure. Chris and Corina Esquivel returned to the United States from Germany nearly a year ago but did not get the homecoming they were hoping for.

The family was met by a tough U.S. economy and even tougher job market. The Esquivels have been living with a relative since Chris Esquivel lost his job and their Gilbert home was foreclosed on in February. He said it is not uncommon for soldiers returning from active duty to have trouble readjusting to everyday life. “For any soldier, it’s the reintegration back into the private sector that’s the hardest thing,” Esquivel said.

The couple and their two children lived in Germany for almost three years, and leaving the Army base was a big change. “You’re in a family overseas, and you come back here and you’re on your own,” Corina Esquivel said. Thanks to two local organizations, the family now has someone fighting for them. Kaplan Management Co. and Project We Remember will provide free housing for one year for the Esquivels and four other United States veterans.

Kaplan celebrated the grand opening of The District at Mountain Vista in Mesa, its latest luxury apartment complex, Friday with a ribbon-cutting ceremony and a tribute to U.S. veterans. Matt Summers, president of the company, wanted to honor U.S. veterans by providing free housing for one year after they return home from abroad. “This is a hand up, not a handout,” Summers said. “We want to inspire other management companies to do the same thing.” He is so happy with the current project, Kaplan plans to implement a similar plan in Texas, Massachusetts and Arkansas within a year. Summers said that when it comes to helping others, “It’s about doing, not just about talking.”

Summers contacted Project We Remember, a local nonprofit organization that was founded in 2006 by Vern Bagley, to find worthy veterans whom he could help. Bagley is a Vietnam veteran who started the organization to provide support for U.S. veterans. He said he learned firsthand that veterans do not always get the support system and honor they deserve after coming home from serving their country. Bagley was criticized and condemned after returning to the United States from Vietnam in 1968. He created Project We Remember in 2006 to help ensure that others would not have to endure similar treatment. “We are always looking for people who are trying to improve their lives and have just run across an unfortunate circumstance,” Bagley said.

The nonprofit group utilizes the VA Hospital, Arizona Department of Veterans Services and Veteran Centers to find candidates. Bagley said his organization is funded purely by individual donations and does not receive any federal funds. The experience has been like a dream for the Esquivels, who say the whole experience seems to have happened overnight. Chris Esquivel is starting a new job in the coming week and said he plans to utilize his Army benefits to go back to school. The Esquivel family is confident the next year will be a real opportunity for them to get back on their feet. “What can you do but hit the ground running?” Esquivel said.

11-May-09 9:45 AM

M. Kaplan Cos. Utilizes Creative Asset Management Tools to Achieve High Occupancy During Downturn

Erika Schnitzer — Fri, 13 Mar 2009 20:00:00 GMT

Rogers, Ark.—The M. Kaplan Cos. LLC, a Houston-based owner, operator and developer of multifamily properties, recently converted its Ranch at Pinnacle Point, a 392 -unit Class A apartment community in Rogers, Ark., into a corporate housing solution that enjoys a 95 percent occupancy rate.

Kaplan Acquisitions and Development, the development arm of M. Kaplan Cos., had completed the project in February 2007 and expected to see solid returns.

“At the time this property was developed, the market conditions in Northwest Arkansas were really good,” notes Matthew Summers, president of management at Kaplan Management Company Inc., the property management division of M. Kaplan Companies. The area saw extensive job growth and an upswing in the single-family market, and it was an overall good area to develop assets, he says.

When the sub-prime crisis hit, however, the community was sitting at 31 percent occupancy after nine months of leasing, and the shadow market was deeply affecting apartment fundamentals. “I took a look at the asset and the surrounding community and what the anchors were and saw it was an opportunity to use innovative ideas to conform the asset to what’s there instead of trying to fit the box” of what was already there, Summers tells MHN.

Located in close proximity to the world headquarters of Wal -Mart, Ranch at Pinnacle Point, designed by Houstonbased Clerkley Watkins Group, became the answer to corporate housing. As Summers explains, the community would provide corporate residents with the same amenities as a hotel while charging less, all the while allowing Kaplan to meet their pro forma rents. Furthermore, he says, the company began by renting furniture for its corporate suites, but later recognized that the return on investment took only four to five months. “The key to the success of the idea is the infrastructure around [the property],” notes Summers, which he says includes the major area employers. This particular property, he says, “doesn’t work in typical corporate suite settings for someone who comes in for two to three months. It’s for something that’s a little more permanent.” Currently, 45 percent of the community houses corporate residents— who work for employers with year-long leases who may transition employees during that period of time—who are offered the same amenities as more permanent residents.

The Ranch at Pinnacle Point offers one-, two - and three-bedroom units ranging in size from 654 to 1,349 sq. ft. Monthly rents range from $689 to $1,350.

Residences at the Ranch at Pinnacle Point feature black designer Maytag appliances, self-cleaning ovens, double compartment sinks, walk-in closets, oversize tubs, and in-unit washers and dryers. In addition, residents have access to storage units, carports and garages with remote access. Community amenities include a fitness center; a pool area with a spa, private se ating, gas grills and an outdoor fireplace; a game room with a billiards table; and a movie theater that has a complementary movie library and that can be reserved for private functions.

With the economic crisis looming over the country, Summers believes now is the time to embrace change. “You have to. The days of throwing out an advertisement and sitting back and waiting for traffic to walk through the door are over. You have to be aggressive in going after traffic,” he asserts. “You have to individualize your management strategy and see what the need is for the asset. If you don’t have people at the helm who know how to run the asserts, most will die on the vine.”

In distressed times, says Summers, management becomes more crucial than at any other time. “It really gives us an opportunity to do what it is we do on the management side—manage the assets and get them to produce, make them achieve what it is they are supposed to be doing.”

He also notes that smaller management companies can benefit in the downturn, as Kaplan—who currently has 5,000 units under management—is doing. “I think what you’ll start to see is a trend in multifamily management that goes toward managers that don’t have huge portfolios and can devote more time and attention to assets. ”

13-Mar-09 3:00 PM

Kathy Vandegaer joins Kaplan Management Company

noemail@kapcorp.com — Tue, 13 Jul 2010 22:15:00 GMT

Kathy joins Kaplan’s management team as Vice President of Business Development. She began her career in the property management industry in 1991 and was recently awarded Supervisor of the Year by the Houston Apartment Association. Kathy currently serves on the Executive Counsel of IREM as the Vice President of Membership and as a National Governing Council ARM committee member. She was awarded ARM of the Year in 2008 and 2009.

Kaplan Management Company

Fri, 14 May 2010 20:45:29 GMT

The Royalton at River Oaks

Houston, TX

Kaplan Management Company

Fri, 14 May 2010 20:37:13 GMT

The District at Mountain Vista

Mesa, AZ

Kaplan Management Company

Fri, 14 May 2010 20:19:18 GMT

Las Ventanas

Houston, TX

Kaplan Management Company

Fri, 14 May 2010 20:15:30 GMT

MonteVerde

Phoenix, AZ

Kaplan Management Company

Fri, 14 May 2010 20:10:58 GMT

Ranch at Pinnacle Point

Rogers, AR

Kaplan Management Company

Fri, 14 May 2010 19:53:28 GMT

Stone Mist

Houston, TX

Kaplan Management Company

Fri, 14 May 2010 19:39:52 GMT

Parkside

Sugar Land, TX

Kaplan Management Company

Fri, 14 May 2010 18:32:10 GMT

The District at Greenville

Dallas, TX

Kaplan Management Company

Wed, 03 Mar 2010 17:23:30 GMT

The Alameda Condominiums

Santa Fe, NM

Kaplan Management Company

Wed, 03 Mar 2010 17:22:54 GMT

The Breakers at Windmill Lakes

Houston, TX

Careers

Wed, 09 Jun 2010 23:02:57 GMT

Please apply online and provide your resume at https://home.eease.adp.com/recruit/?id=507398. We will contact you if there is a job opening that suits your skill sets. If not, we will keep your resume on file for six months.

San Marina Apartments

Wed, 02 Jun 2010 16:23:17 GMT

7002 W Indian School Road
Phoenix, AZ 85033

(623)-848-1555

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Summerhill Place Apartments

Wed, 02 Jun 2010 16:20:22 GMT

6801 W Ocotillo Rd
Glendale, AZ 85303

(623)-939-7793

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Memorial Oaks

Wed, 02 Jun 2010 16:16:23 GMT

6601 Memorial Drive
Texas City, TX 77591

(409)-935-3277

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Oakwood Estates

Wed, 02 Jun 2010 16:11:21 GMT

6869 Chickering Rd
Fort Worth, TX 76116

(817)-735-1020

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Carlyle Crossing

Wed, 02 Jun 2010 16:11:08 GMT

6300 Vega Drive
Fort Worth, TX 76133

(817)-423-2700

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Home Page - Connect

Wed, 02 Jun 2010 15:36:00 GMT

The District at Greenville

Dallas, TX

Discover the District - elevating urban living to a new level of sophistication.

The District at Greenville is just minutes from shopping, restaurants, and is centrally located. Community amenities include gated entry, clubhouse, coffee bar, 24-hour fitness center, theater room, conference room, and resort-style pool. Residents have seven spacious floor plans to choose from and have personal garages and storage units available.

Elevating Urban Living to a New Level of Sophistication

Testimonials

Mon, 24 May 2010 19:11:35 GMT

Testimonials coming soon.

Left Column - Communities Content

Mon, 17 May 2010 15:22:08 GMT

Find your new home at a Kaplan community.

Old Management Page

Wed, 12 May 2010 22:22:27 GMT

Kaplan Management Company is the management division of The M. Kaplan Companies. Led by a group of seasoned professionals, we have more than 31 years of experience in property management. We have managed more than 15,000 units in most of the Sun Belt states including Alabama, Arizona, Arkansas, Florida, Georgia, Mississippi, Nevada, New Mexico, North Carolina, and Texas. We manage every property from an ownership perspective, implementing an individualized, proactive, and strategic approach to achieving your financial goals. During boom times, it is easy to confuse a tight market with management skill. Owners no longer have that luxury in today’s market. We thrive because while others offer shortsighted solutions and panic measures, we remain committed to managing our properties in the Kaplan way. Kaplan uses a systemic management approach that focuses on the way discreet management elements interact to influence overall performance. Quickly responding to maintenance...

Lorem ipsum survey

noemail@kapcorp.com — Wed, 16 Dec 2009 19:54:38 GMT

Objectives:

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Release Date: 16-Dec-09 1:54 PM
Expiration Date: 16-Mar-10 1:54 PM

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2009-12-16T19:54:38Z

Instructor: Instructor

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