Case Studies: Asset Management

Magnolia Run, Virginia Beach, VA

Bonaventure was engaged by a client to perform a comprehensive review of an under-performing asset and prepare a report on how to improve operations. Bonaventure performed an extensive review of all aspects of the property including the competitive landscape, marketing, leasing, internal controls, financials, the physical plant, and human resources. the client was so impressed by the report that they immediately engaged Bonaventure to take over management and put the plan into action.

Challenges

  • Associates were motivated to succeed, but were frustrated by a lack of clear direction and chain of command.
  • The property was not maximizing rents.
  • Staff was not correctly marketing the property.
  • No clear benchmark standards for operating performance were in place.
  • Lack of accountability was present with the staff at the property

Solutions

  • Interviewed the staff to determine the appropriate chain of command, and put together a formal job description for each team member.
  • Also initiated an incentive based compensation plan to align the staff and owner’s interests.
  • Performed a market study to identify the correct comps, and appropriate pricing for the asset.
  • Also initiated an amenity pricing model to capitalize on the higher demand units. Revenue grew 7.7% in the first year.
  • Performed a mystery shop on the staff to identify training needs for the management staff.
  • Incorporated its findings from the financial analysis into a 12 month and 5 year operating budget for the property. expenses were reduced by 11.7% in the first year.
  • Through Bonaventure’s new policies and procedures, training, incentive compensation pack-age, and budget controls the NOI increased 20.1% in first year of management.