Challenges: Friedman became the court appointed receiver of The Summit Apartments on July 19, 2010, which transitioned into a management assignment on March 31, 2011. At the time of the receivership order, the physical occupancy was 90.2% and the economic occupancy was 83.3% . Focus was set to increase occupancy, both physical and economic, to convert the 100 plus month to month leases to term leases, to improve the resident profile, maximize rental rates and implement an aggressive RUBS program.
Solutions: A strict resident renewal program was implemented; stipulating the number of late payments allowed, apartment inspections were conducted and a zero tolerance policy for resident disturbances was enforced. In addition, the community underwent a 1.5 million dollar capital renovation program; including window replacements, interior corridor upgrades exterior painting and siding, carport upgrades and roof replacements.
Results: After 75 weeks the physical occupancy is 99.4% and the economic occupancy is 98.7%. All concessions have been eliminated, rental rates have been increased by more than 10% and the RUBS program fully implemented.