Nearby Apartment Property Synergies

[Jason Woodall]

Would be interested to hear if anyone has had success acquiring an additional property nearby an already held property.   

We are evaluating an opportunity to add another property to our portfolio and were trying to account for potential cost savings.  The biggest ticket item is personnel costs.  Each property on its own would need 1 leasing/property manger and two maintenance personnel.  The thought for a combination of the two would be 1 leasing/property manager and 3 maintenance personnel.  

Obviously there are a lot of variables such as property condition and other items, but curious how realistic it is to share leasing and maintenance personnel between properties.  

Also, how far is too far to assume personnel savings.  Would something within 1 mile allow for sharing of leasing/management?  Assume same number of maintenance personnel, and just share the leasing/management?

[Todd Dexheimer]

It can be of great benefit if they are within a mile. The closer the better, but anytime you can sharing staffing and strategies is a benefit. This works particularly well when you have properties with different unit sizes as well. 

You are in the same neighborhood and quite possibly have similar finishes, so it is easy to refer prospective tenants to your other building. 

You are able to share maintenance staff, which helps keep them working at all times

You can also share inventory as well, which can keep down overhead