The Sure Bet for Investors

By Stephen L. Burger, CPM®, CRX, CSM

It should come as a shock to no one that, as a property management firm with a healthy portfolio of apartments, we are bullish on multifamily. But this is not solely a matter of legacy. Multifamily is a sure bet, not just for EBMC, but for investors as well, seeking the market-beating returns that real estate can deliver without the cyclically driven drama that other real estate food groups--such as office or retail--can represent.

The fact is that multifamily is the leading property type in terms of stability, supply-and-demand and performance. As we recently reported in our news section, “While all property types saw increases, apartments led the pack with a 5.4% jump in NOI growth. And that upside is expected to continue.”

Further ensuring the good bet that is the apartment market for less-risk-averse investors is the presence of a strong management company. The ability to secure and maintain over the long term creditworthy tenants through state-of-the market tenant relations programs, and the further ability to maximize income and minimize expenses provides a special degree of stability for those investors, regardless of changes in the economic condition.

As IREM president Chris Mellen wrote recently, “It all goes back to the basics and the essential value proposition of good management, and there are a number of techniques to control expenses beyond the low-hanging fruit of raising rents (never a popular concept and even more so in tight times. Besides, the local market always confines you to a narrow range of increases).”

These steps include, but certainly are not limited to, reviewing every component of the income/expense statement to make sure our clientele is getting the biggest bang for its buck. For these reasons, says Chris, “property managers are uniquely positioned to prosper in all kinds of conditions.”

Not all investors have the heart--or the stomach--for high-risk/high-return investments. I would direct their attention to the relatively stable performance of multifamily investments, backed by the proven track record of a property management company that understands their long-term goals.

Steve Burger, President

As president and COO of Eugene Burger Management Co., Steve Burger is directly responsible for the overall quality, depth and consistency of management services provided in all 15 regions in the EBMC coverage map.

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