MultiFamily Executive interviewed some executives working in the single family rental space to try and crack the code for effective management. One critical factor? Geography.
MACK follows the general rule of thumb that assets are no more than 30 minutes away from each other and its central hub. By setting this specific geographic focus, it’s able to cut down on extraneous costs, like having property managers drive across town for emergency maintenance. Similarly, Oakland-based Waypoint American Homes abides by geographical rules, with properties located all within a 25-mile radius, at most.
“We buy thoughtfully,” says Doug Brien, Co-CEO and founder of Waypoint American Homes. “If we’re going to start buying, we’re committed to buying enough of critical mass to operate it efficiently. You see costs get out of control when you spread different homes spread across different markets.”
Another benefit of managing 10 properties on the same block or buying into a master plan community, is in forging relationships with the neighborhood. Buying in bulk also helps with insurance costs.