When saddled with an underperforming real estate asset it is important to take an objective point of view. Distressed property investments may have multiple issues and it is worth asking yourself some questions in order to get to the bottom of the situation.
There are a number of contributing factors to consider when dealing with a troubled asset. For instance, the state of the local economy, the attitude of the tenants, and the service your asset offers, are all elements to consider. There is, however one question that is very important to answer in order to save a distressed property:
Does anyone know we exist? If so, what do they think about us?
Many real estate assets devalue because tenants leave and they do not get replaced. This could be due to mismanagement or inadequate facilities but not necessarily. Housing, whether it is for personal use or business, is a necessity, so people are going somewhere. So why are they not choosing you?
In many instances your asset might not be listed in the right areas. Do you show up on Google? Can potential customers find your building without searching for you directly?
Assets will underperform if they are not marketed correctly. To achieve higher occupancy rates it is necessary to get your property to show up where it can be found. Of course, it is still very important for it to be maintained well, offer value oriented amenities, and have attractive features and terms, but even when you have all that, quality leads still need to find you.
EpiCity Real Estate Services understands all of the key components of turning around a troubled real estate asset. From management to marketing, we have the experience and the expertise to make distressed properties profitable again. For more information contact Tom Stokes at tstokes@epicity.com.