Q: What type of property is typical for VIP?
Answer: VIP has always specialized in the mid cap B and C space. Atypical property would be 25 to 150 units, middle aged (1985 or older). While we do have smaller and larger properties, VIP excels in the mid cap space.
Q: How many units do you currently manage?
Answer: As of 5/1/2020 VIP manages a portfolio of 110 properties, and 3,850 apartment units. VIP manages properties in metro Phoenix, Tucson, Florence, and Casa Grande.
Q: What do you charge for management fees?
Answer: Management fees are always a function of rent collections, and vary on the size of and scope of the property. Fees for or smaller properties generally run in the 4% – 6% range, depending on the management scope, while larger properties (Over 50 units) generally run 3.5% – 4.5%. Management fees are ultimately determined by the income the property drives, and the level of oversite required.
Q: Is onsite management included in the management fee?
Answer: No, onsite management is always a line item operating expense of the property, similar to utilities or taxes or landscaping et. Any property over 40 units would require half time site management, and properties over 60 units would be recommended for full time site management. Smaller properties that are not setup for site management would be assigned a “floating” site manager who would oversee duties at the property.
Q: What additional fees do you charge?
Answer: Generally there are no other “income” charges to the property. Smaller properties are charged an admin fee, typically $3 -$5 per unit for pass-through expenses such as postage, supplies, et, which are handled at corporate and passed through to the property. At larger properties these would not apply, and are handled at the site manager’s office. Because of the absence of a site manager, smaller properties may also be assessed a leasing fee. If applicable this normally amounts to $200 for a new 12-month lease.
Q: If I am purchasing a new property can you assist with due diligence?
Answer: Yes. With a signed management agreement, we will assist our clients with financial analysis, lease and file audits, physical inspections, repair estimates, budgeting, and forward planning.
Q: How is maintenance handled and what are the costs?
Answer: All maintenance is run through site management (at larger properties) or area managers (at smaller properties. Any maintenance request leads to the generation of a work order and if assigned to staff maintenance. Maintenance will analyze the request and advise management of best action. Ultimately the site or area manager ensures a well maintained maintenance budget.
Q: Do you also do vacant turnovers? Remodels?
Answer: Yes, through our maintenance and construction division we can handle anything from leaks and drips, to full apartment renovations, to major construction projects. Our maintenance division is a General Contractor with a KB-1, allowing for any level of maintenance, remodel, or construction.
Q: How frequently do you visit my property?
Answer: Site managers by definition would be on site daily. Area managers (who are paid by VIP) generally tour properties 2 – 4 times weekly. From these visits area managers will provide site related feedback to you the owner.
Q: Who would be my direct contact?
Answer: Generally it would be the area manager – the person tasked with the day to day operation of the property. However regional managers and company principals are always available to owners.
Q: When do operating reports go out?
Answer: The accounting cycle is from the 1st to the 30th (or the last day of the month). Between the 1st and the 8th bank statements are reconciled, invoices copied, and initial reports are generated for area manager review. Managers review between the 8th and the 10th, and if all is OK reports go our between the 10th and 12th. Reports are uploaded to your private online portal, and can be accessed any time during the management relationship.
Q: What reports are included?
Answer: Depending on the property, the report will have an opening cover letter, followed by Cash Flow Statement, Income Statement, Trailing 12-month Income Statement, Rent Roll, Balance Sheet, Aged Payables, the Bank Statement, and copies of invoices and receipts. VIP can add or delete any number of reports, or for a small fee can offer customized reports.
Q: How are owner cash disbursement handled?
Answer: Owner disbursements are sent via ACH transfer to the bank account of your choice, and in conjunction with the monthly operating reports.