Property Management Success Story: SVN / First Guardian Group

The Road to Property Management Success

Property Management can be very profitable  — just ask Sperry Van Ness / First Guardian Group. The San Jose, California firm recently announced the successful close of escrow on University Fountains, a student housing complex that sold for $34 million. Receiving several offers, the property saw substantial demand and competition among buyers.

SVN/FGG undertook the property management over an 18-month period before beginning to market the Class “A” property. Under SVN/FGG’s management during the current school year, the property occupancy increased by 15% — crushing other years in comparison. SVN/FGG set aggressive weekly leasing goals which compared improvements in occupancy and income against all other competitive properties in the submarket. The leasing team was given incentives based on their progress in moving the performance of the property ahead of all other comparable assets. The hard work of SVN/FGG Advisors produced returns of over 100% of the original equity.

So how did they do it? Proactive asset management and collaborative marketing efforts can get the job done.

Proactive Asset Management

  • Established aggressive weekly leasing goals to continually improve occupancy
  • Strong incentives for moving property performance ahead of all comparable properties in the submarket
  • Annual competitive re-bidding of all significant ongoing services (landscaping, garbage, pool maintenance, etc.)
  • Monthly owner conference calls
  • Detailed monthly variance reports including cost ratio comparisons to similar properties

Collaborative Marketing Efforts

  • All Brokers received marketing materials from day one, which included SVN’s statement “50% of the commission 100% of the time
  • All Brokers requesting access to the property data vault were personally contacted and encouraged to provide a bid
  • All Brokers were treated with the same respect and courtesy regardless of affiliation
  • All questions and inquiries were answered 90% same-day
  • SVN/FGG participated in all property tours with Brokers

Following these guidelines which emphasize competitive and collaborative practices can lead to property management success. So take a cue from SVN/FGG and collaborate with your team members to achieve a profitable property management turnaround.

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SVN PM Value Prop

Launch of Sperry Van Ness Property Management Services

A comprehensive product management (PM) franchise product–Sperry Van Ness Property Management Services— is now  is available as part of the Sperry Van Ness® organization.  This new offering makes available sales and leasing, building maintenance, tenant retention and other property management services to real estate investors.  Additionally,  Sperry Van Ness Property Management Services includes a master insurance program with lower deductibles and more insurance coverage.  Read more about what Kevin Maggiacomo, CEO and President of Sperry Van Ness International Corporation has to say about this new offering in the GlobeSt.com article Sperry Van Ness Launches Management Franchise.

To find out more, please visit our Property Management Services franchise offering page at https://svn.com/cre-franchising-opportunities/

*All Sperry Van Ness® offices are independently owned and operated.