There Is No “Secret Sauce”
After nearly two decades of experience, one thing is clear: there’s no secret sauce to successful multifamily property management. Since 2006, we’ve managed heartland housing assets through economic cycles, construction delays, and literal fires. The formula isn’t magic—it’s execution.
Superb property management depends on consistency and coordination. It requires systems, structure, and above all, alignment between strategy and tactics. That’s why we built our own management platform—because when you control both the vision and the execution, you protect your downside and scale your upside.
What Happens When You’re Not Prepared?
Take, for example, the photos below—a building at one of our properties fully engulfed in flames just as a team of firefighters arrived. This fire spread rapidly. The fire was so hot it melted the siding of adjacent buildings. Our assistant manager banged on doors until her hands were black and blue to get residents out. Luckily, no one was hurt. But the building was a total loss—over $1 million in damages, a year-long rebuild, and dozens of layers of coordination across insurance, architecture, permitting, leasing, and more.
That kind of response doesn’t come from luck. It comes from experience.
This is the kind of thing that you cannot plan for in any annual budgeting process, and it requires experience and multi-faceted knowledge to successfully manage many months of extraordinary accounting & bookkeeping, displaced tenants, building security, insurance loss adjusters, architecture & design, permitting, procurement, construction contracts, construction draws & insurance escrow accounts, and ultimately construction completion and lease up.
Successful property management is not just about collecting rents and unclogging toilets. Property management can be a complex undertaking, and a strong, experienced and engaged team is essential to success. These are the reasons why we developed our own internal property management capabilities, rather than relying on third party managers whose experience and knowledge is uneven.
Distinguishing Between Asset Management and Property Management
Before diving into our platform, let’s clarify the difference between Asset Management and Property Management:
- Asset Management lives at the corporate level. It’s strategy: executing the business plan, managing capital expenditures, tenant selection criteria, and rent growth targets.
- Property Management is on-site. It’s tactics: leasing, tenant relations, maintenance, renewals, and vendor coordination.
Alignment between these two is essential. Without it, NOI suffers—and with it, your returns.
Why We Don’t Use Third Party Property Management
Over the years, we’ve worked with many third-party managers. And while we’ve learned from each, the biggest takeaway is this: most third-party platforms lack strategic alignment with operators.
In several cases, tenant selection criteria were completely mismatched with the market. This exposed us to excessive turnover costs and damage charges. Additionally, they’re paid based on gross revenue, not Net Operating Income. Ironically, NOI drives all the valuation metrics for owners, not gross income, so NOI is by far the most important KPI for owners. So naturally, their focus leans toward filling units, not maximizing profitability. That misalignment shows up in costly turnovers, poor screening, and in some cases, on-site staff who didn’t understand basic investment metrics.
Our business is built around alignment with investors. That same standard didn’t hold up when outsourcing property operations. We were given on-site managers who did not know what ROI meant, how to do a market study, or what a trade-out report was.
These are essential tools in a value-add program, and we grew frustrated by having to train our on-site managers while paying their employers a management fee.
So we brought property management in-house.
A Platform Built Around Risk Management & Automation
We Built our internal property management platform focused on risk management & automation.
Our variable expenses per unit are routinely less than the CoStar variable expense comps in our markets. This is primarily because we focus our management platform on tenant risk management, beginning with resident screening. If we get resident screening right — in compliance with fair housing guidelines — then we can increase resident retention and reduce turnover and damages costs.
Here’s an overview of our platform below:
1. Resident Screening & Deposit Policy
We use:
- Automated income verification tools to verify reported income directly through integrations to prospects bank account and verify payroll deposits.
- Credit & criminal background checks.
- References from previous landlords to verify rental history.
- Deposit scoring for required security deposits based on risk tiers, where “higher risk,” yet still qualified, tenants are required to pay a higher security deposit.
Additionally, we utilize a geo-fenced app during move-in inspections to avoid security deposit disputes upon move-out. This process involves residents taking photos of the unit upon move-in and directly uploading these photos into the app. The photos are then consolidated into each individual tenant ledger. This protect both residents and our management company to reduce future potential disputes. A pre-agreed upon damage charge schedule is baked into every lease as well.
2. Lease Renewals
- 100% electronic, scripted by our asset manager based on market studies and rental comps.
- Renewals are completed in accordance with Fair Housing guidelines and apply consistent rental increases across all renewals for all residents.
- No controversial algorithmic pricing systems due to past inaccuracies and ongoing legal scrutiny.
3. Maintenance & Repairs
- 24/7 electronic work order system with call center support.
- On-site maintenance team earns bonuses for clearing majority of tickets within 24 hours. Our system allows on-site staff to prioritize “quick-clear” work orders while allowing flexibility for longer projects. Ultimately, avoiding a backlog of work orders on site.
- Our in-house staff handles day-to-day projects including groundskeeping, unit turns, HVAC repair & replacement and interior upgrades & rehabs. We then use third-party contractors for longer-term capital projects such as roof replacements, parking lot maintenance, and programmatic window & siding replacements.
4. Interior Upgrades
Over-improvement is the cardinal sin in property management. If the market will not currently support an added amenity like granite countertops with the added rent required to fund the upgrade, investors will lose money on that upgrade.
To prevent this from happening, we conduct detailed market comp studies combined with an ROI analysis on all interior upgrade programs:
- Upgrades require a minimum 15% ROI
- Cost-effective improvements like two-tone designer paint often win out (sometimes this is all that’s needed).
- Procurement is handled with best pricing practices via bulk buying, exclusive vendor agreements, or overseas sourcing (with quality control)
5. Capital Expenditures
One of the most significant items related to corporate governance is the replacement of major property components like parking lots & roofing. These replacements are costly, which makes them subject to joint GP approval, but they are required because we know that some components exceed their useful lives during the hold period.
- Major items (roofs, siding, windows) go through GP approval and are often built into acquisition plans.
At the below property, an approved programmatic exterior upgrade program is boosting occupancy to above-market levels. In addition to replacing a derelict tennis court with a brand new pickleball court, we are also replacing the exterior siding with brand new contemporary siding in fresh colors and the property’s original construction windows with brand new, energy-efficient, double-paned, vinyl-framed windows and new front doors and lettering.
- These renovations boosted the occupancy at this property to 96%, the highest in 5 years. Moreover, the CoStar market comparable occupancy for this period was 91.5%.
- Renovations have increased occupancy by over 1,000 bps vs. previous owners (96% vs. 86%) and 400+ bps above CoStar comps (91.5%).
6. Leasing, Marketing, and Touring
We have used a variety of marketing & advertising tools over the years as new technology has evolved. Currently, Apartments.com and Apartment List are the most effective lead generators for us. Once we have a lead, we are able to qualify them using remote touring tools like Matterport.
Matterport allows prospects to tour vacant apartments virtually, so when we produce the Matterport videos, we also use virtual staging so residents see a fully furnished apartment, rather than an empty, sterile looking vacant apartment. Here is a link to a renovated one bedroom apartment that prospects can tour virtually. By clicking on the white circles, prospects are able to navigate through the apartment on their own time without ever leaving their home. This process enables us to be more efficient.
Ultimately, we intend to implement smart home technology, including smart locks. Smart locks allow for the use of temporary access codes for self showings at the convenience of our prospects. This will also allow us to centralize management and leasing such that we can benefit from much a more efficient staffing model where individual staff manage multiple properties from a remote location.
- Apartments.com and Apartment List drive leads
- We use Matterport with virtual staging for remote tours
- Smart locks are next, enabling centralized leasing via remote teams
Rent Collections & Financial Management
All rent payments are 100% electronic. We don’t charge convenience fees because we want to encourage adoption, not discourage it. Going digital nearly eliminates the risk of theft, paper errors, and manual tracking—and it gives us real-time visibility into receivables.
On the accounts payable side, our system is equally streamlined. Invoices are sent electronically to a lockbox, scanned, and uploaded into our A/P portal. From there, they follow a tiered approval process—beginning with the on-site property manager, then the regional manager, and finally the asset manager. Once approved, the invoice uploads automatically into our property management software, where it’s permanently stored and accessible with a single click.
Essential utility bills—water, electric, and gas—are uploaded directly into the software and paid automatically on the due date. This automated system:
- Prevents service interruptions from misplaced bills
- Eliminates late fees
- Removes the need for staff to manually post hundreds of utility charges monthly
- Eliminates the burden of storing or scanning physical utility records
Accessible digital copies make due diligence for refinancing or dispositions far more efficient, especially when buyers or lenders request 24–36 months of utility history.
Because both rent collection and A/P are fully electronic, we reconcile bank accounts quickly—typically within 15 to 20 days of month-end. This allows us to generate clean, accurate financial statements—P&L, balance sheet, and actuals vs. budget—in that same timeframe.
- Rent Collection & A/R
- 100% electronic, no convenience fees.
- Immediate visibility into aging reports.
- Automatic posting of fees, letters, and tracking for eviction support.
2. Accounts Payable
- Invoices scanned, uploaded, and approved through a tiered system.
- Essential utilities paid automatically, eliminating late fees and missed payments.
- All invoices stored digitally, streamlining audits and transactions.
3. Reporting
- Bank accounts reconciled in 15–20 days.
- Monthly financials include P&L, balance sheet, and budget comparisons.
Resident Relations That Actually Build Community
We regularly host on-site events—like pool parties, barbecues, toy drives, and back-to-school initiatives—to foster a stronger sense of community. These aren’t just for show. They create meaningful resident engagement and boost retention.
Meanwhile, our on-site staff are rewarded for performance that drives measurable results. For every lease renewal, staff earn a $20 bonus, reinforcing their focus on resident satisfaction and long-term retention.
To further encourage great service, we’ve integrated Google Review requests into our maintenance process. Every completed work order includes a printed receipt with a QR code. When scanned, it takes the resident directly to our property’s Google Review page. Residents are free to rate us however they wish—but several of our properties now maintain 4+ star ratings, which we view as strong validation of the system.
Beyond day-to-day operations, our team shows up in meaningful ways. For example, during Hurricane Helene, staff organized food and water donations from residents and our corporate office—then drove the aid personally to affected families in North Carolina. These are the kinds of actions that go beyond policy and reflect the culture we’ve built over time.
- Pool parties, BBQs, toy drives, and back-to-school events
- Bonuses for staff tied to retention and Google reviews
- QR codes on work order receipts link directly to our review page
- Response to disasters like Hurricane Helene shows our team’s community commitment
Late Payments, Evictions & Insurance Protections
We’ve built our rent collection and enforcement protocols to be firm, fair, and fully automated. Our 100% electronic systems give us immediate visibility into delinquencies and help preserve community standards while managing risk for our investors.
Late Payments
All rent is due on the first of each month per the lease agreement. We do not accept partial payments, and after a 5-day grace period, our system automatically posts a $25 flat late fee, followed by $5 per day for each additional day rent remains unpaid. Residents also receive an outstanding balance letter, which is automatically logged in their online portal. If necessary, this letter supports future eviction filings.
Evictions for Non-Payment
We aim to keep residents in their homes whenever possible. If a tenant falls behind, we offer promissory notes and structured payment plans. However, for residents who remain unresponsive, we issue a 3-day Notice to Pay or Quit in accordance with local law. If no payment is received, we proceed with a formal eviction for non-payment.
Evictions for Lease Violations
When residents violate community rules or our Drug & Crime-Free Policy, we issue a 30-day Notice to Vacate. These policies are acknowledged via lease addenda at move-in and are enforceable through our lease structure. Violations include, but are not limited to, unauthorized disturbances, unsafe behavior, or criminal activity.
Insurance as an Added Layer of Protection
Even with a thorough screening process, evictions can result in property damage. That’s why we require all residents to carry renters insurance, with a $100,000 policy minimum. In cases where damages exceed the security deposit, we’re typically able to recover the difference through the resident’s policy—particularly in common cases like kitchen fires.
Compliance is non-negotiable. We track insurance policies in real-time through an integration with our property management software, which pulls expiration dates and payment status directly from our renters insurance provider. If a policy is set to lapse or terminate, our system alerts on-site staff so they can help residents correct the issue before coverage ends.
This process helps us avoid making a claim under our primary physical loss insurance policy, which would cause our general property insurance premiums to increase.
Resident Communications Technology
We meet residents where they are—whether that’s by text, phone, or app-based communication. Most residents today prefer texting, and our property management software integrates this seamlessly. All messages are stored automatically within the resident’s digital file, creating a clear, searchable communication history that’s available anytime it’s needed.
Phone calls are equally streamlined. Our team uses a VOIP phone system directly integrated with our software. This allows staff to make and receive calls through the platform, or even from their mobile phones using an app that displays the property’s office number. Every call—whether inbound or outbound—is recorded and logged in the resident’s record, providing full visibility and eliminating the risk of “he said/she said” misunderstandings.
New prospect? If we don’t already have their info in the system, our software allows staff to add them to our database in just a few clicks.
Most important: This VOIP system doesn’t just improve service—it significantly reduces costs compared to legacy providers like AT&T. That’s how we drive both operational efficiency and financial performance.
Investor Communications: Powered by Juniper Square
We use Juniper Square as our investor portal of record, and in our experience, it stands alone in terms of functionality, user experience, and transparency.
Its advanced mail merge tools allow us to send highly detailed distribution summaries by email—without requiring investors to log in to view their information. For example, a recent distribution included:
- 100% return of capital
- 100% fulfillment of the Preferred Return
- Pro-rata profit participation above the Preferred Return
Each amount was broken out clearly and delivered directly to each investor’s inbox using Juniper Square’s mail merge capabilities.
Of course, investors seeking more detail can always access their personalized dashboards through the portal. Full reports include expense benchmarking, occupancy comparisons, and third-party CoStar market data to offer deeper insights into asset performance.
We believe investor communication should be seamless, transparent, and proactive—and Juniper Square allows us to deliver exactly that.
Strategy, Market Knowledge & Governance
We’ve been investing in Midwestern markets since 2006. Over that time, we’ve developed granular submarket knowledge—down to the street level—in the neighborhoods where we have the most conviction. That firsthand market knowledge compounds over time. It allows us to move quickly when new opportunities arise and gives us a meaningful edge over outside investors.
To support that insight, we use third-party data providers like CoStar for occupancy trends, rent comps, and benchmarking. This research adds another layer to our strategy—but it never replaces boots-on-the-ground experience. We’ve reviewed countless third-party reports over the years, and while many are useful, others are flawed or incomplete. We actually welcome that. Information asymmetry creates opportunity. It also reinforces why hyper-local insight from our on-site teams and regional managers is irreplaceable.
On the governance side, we work with a combination of local and national legal counsel on transactions, entity structuring, and compliance. For property-level oversight, we use Grace Hill, a leading provider of online training and fair housing compliance tools. Their mystery shopper program ensures our teams uphold the standards we expect, while staying current on evolving regulations.
Together, our internal knowledge, trusted data partners, and compliance infrastructure allow us to operate confidently—and responsibly—in every market we serve.
Fees, Alignment, and Dispositions
We devote significant time and attention to aligning our interests with those of our investors. This begins with a meaningful co-investment in every deal, and continues with a fee structure intentionally designed to avoid dilution.
We don’t take large cash fees at closing—and we never will. We also decline fees like disposition and refinance charges, which are often embedded by sponsors to enhance their compensation regardless of investment outcomes. Instead, our model is simple: we invest alongside our partners, and we generate our returns the same way they do—through the long-term success of the asset.
Our management fees typically range from 3–4%, depending on the property’s size and complexity. Our asset management fee is 2% of gross revenue, not a percentage of equity under management. While the latter has become more common recently, we generally avoid it because it often leads to inflated sponsor compensation that is disconnected from property performance.
When it comes to exits, our track record includes multiple refinancings and full-cycle dispositions:
- We’ve completed four refinances where investors received 100% of their capital back, along with full satisfaction of their Preferred Return.
- We’ve also executed two full-cycle sales that produced IRRs in excess of 20%, even though we held those investments for over a decade.
Before selling, we always perform a detailed Hold/Sell analysis, which we share with investors to support a transparent decision-making process. Despite the added complexity of refinancing or winding down a partnership, we do not charge fees for executing these transactions. We believe that our promote should be earned through real returns—not through a list of charges that dilute investor outcomes.
Final Thoughts
We didn’t build this platform to impress investors—we built it to protect them.
From front-line maintenance to backend financial reporting, every system we’ve implemented serves a single purpose: to maximize operational performance while minimizing risk. Our philosophy is simple—if it doesn’t drive NOI or improve resident experience, we don’t do it.
Managing properties well is hard. Doing it at scale without compromising standards is even harder. But with nearly 20 years of experience, we’ve learned how to stay lean, stay aligned, and stay focused on the metrics that matter.
That’s the difference. And in our view, it’s what makes the difference.