There are many factors that can cause an underperforming asset to become distressed. Externalities such as natural disasters, mismanagement and the overall state of the economy can all contribute to the decline of a property and the need to take action. The goal is to carefully determine exactly why an asset has become distressed and then develop a plan to remedy the situation.
Although the economy has played a role in many of foreclosures and low occupancy rates, many times it is the mismanagement of a property that will cause an asset to become distressed. As a lender or property owner, ask yourself these questions in regards to your asset.
- Does my property manager care about the property?
- Is the property manager reinvesting in the asset?
- Have I carefully assessed the situation in regards to my asset and developed a plan for improvement?
In many instances when assessing a property we have found the issue being the overall state and quality of the asset itself causing it to underperform. The tough economy only adds to the issues. Water damage on the ceiling, light bulbs out in hallways and consistent hot water issues have all been reasons tenants have moved out and the rooms have remained vacant.
EpiCity has taken distressed properties in Atlanta running a 40% occupancy rate and with a little TLC turned them into profitable investments boasting 100% occupancy rates in less than a year. The strategy for each property will be different, but we will take the time to identify your unique situation by:
- Determining the cause
- Developing a strategy
- Seeing out the operations
You can turn an underperforming asset into a profitable investment. If you have any questions regarding managing a troubled asset please feel free to contact Tom Stokes by calling 404-995-9494 or email tstokes@epicity.com.