Manage episode 280699223 series 1526602
Apartment investors are always looking for ways to add value to their units. Updating interiors, improving amenities, and adding services are just some of the options multifamily operators use to increase the NOI. Daniel Farber of HLC Equity has identified a unique value-add strategy that considers the flexibility demands of today’s renters and their need for additional services.
Daniel is the CEO of HLC Equity, a multigenerational real estate company that has been in business for 70 years. He shares that furnished apartments are ideal for renters who are new to an area and expecting a short term stay. Think college graduate students, international students, traveling nurses, etc. They also work great for someone who doesn’t want to spend thousands of dollars on furniture. However, what Farber has identified goes beyond offering furnished rentals to offer what they call, serviced apartments.
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Insights on Managing an Apartment Community and Operations
- From the military in Israel to join the family business
- HLC Equity, multigenerational real estate investment company 70 years, business for a century.
- Why HLC Equity pivoted into multifamily investing
- Building an infrastructure to expand its portfolio by bringing on other investors
- Multifamily trends and projections:
When the pandemic struck, we took that reality and decided to outperform the market.
- What Daniel is leary of for the real estate industry in the near future
- How Daniel is attracting and retaining tenants and maintaining a 100% occupancy,
We were able to obtain 100% occupancy during COVID by pivoting our operations to cater to essential workers, offering longer leases, furnished apartments, and a sense of community.
- Community app and communications are the tools that have helped his business and his tenants during the pandemic.
- Creating virtual engagement with tenants together with hospitality to create a safe environment for tenants
- What are Serviced Apartments: Tenants who want a furnished apartment, also want other services like cleaning, laundry, etc.
- Servicing longer short-term rentals (think traveling nurses or corporate housing 2.0.)
- Creating the loyalty program, Layers Unlimited, which creates partnerships with local businesses, utilizing technology
- The profit behind investing in serviced apartments
There’s no doubt about the premium you can get offering serviced apartments: We are seeing a 200% lift on rents
- The business structure and strategy behind serviced apartment units
- Understanding the serviced apartment model and the tenants they attract
- How they are finding and obtaining syndication partners
I was badly injured in the military when I was 18 and felt it ruined my future. After recovery, I was stronger both physically and mentally. Which taught me you can come out of any challenge stronger.
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