Over the past 1.5 years we have been informing our owners that a rental storm was brewing in SWFL - Cape Coral, Ft Myers, Lehigh, Naples. The storm arrived in the form of market saturation, high inventory levels, decreasing rents, high turnover, and higher vacancy time. There aren’t any signs of it stopping anytime soon. As you are aware we are a property management company that believes in continuously improving by adding value for all that we work with. Today, I wanted to inform you of 2 new value add programs that we are rolling out in the month of August to combat this storm  – Tenant Retention and 6-Month Inspections.

Tenant Retention

In an effort to reduce your biggest expense – turnover - we will be implementing a tenant retention program which will cost you pennies but save you big dollars. Please be advised that this is an INTIAL roll out and will likely need to expand and/or change as the results of effectiveness are evaluated.

·        Currently, there is a $60 renewal fee that is charged to the tenant, this will now be charged to the owner.

·        Providing the tenant with a $50 credit towards rent. This is for ANY and ALL tenants that that we offer a renewal to.

·        $100 credit toward the tenants rent, at renewal, ONLY when they have paid their rent on time, every month, for the past 12 months.

·        6-month inspections (see below)

How does this impact your bottom line?

The average market rent in our portfolio is $1,573, times 12 months, give us a yearly value of $18,876 per tenant. We will be starting off our retention program by providing tenants with a potential of $210 of credits. To understand the ramifications, you divide the credits by the yearly value $210/$18,876 = 1.1% of an impact on your revenue. Btw, when a tenant turns over the average potential expense is about $5,600 (lost revenue, rent ready expenses, tangible and intangible expenses, etc). To spend $210 to save $5,600 is an easy decision.

6-Month Inspections

Nationally, tenants #1 complaint is maintenance! The better the maintenance the less turnover and complaints. We also understand that owners are extremely sensitive to expenses. We feel that this program is a win for both our tenants and our owners. Below are some highlights:

·        Improved customer satisfaction for our tenants.

o   Issue will be identified sooner.

o   Fixed faster – some during the inspection.

·        Reduced expenses for our owners.

o   Identifying and repairing items before they cause more damage.

o   Making repairs before the unit turns over will lower expenses and down time when it turns over.

·        Expense for inspection is FREE! There are zero inspection fees.

o   The inspector will fix minor items at no charge to the owner.

o   Rule of thumb - If they can fix it quickly, with a screwdriver, wrench, or hammer then there is no charge.

·        Insight into:

o   the condition of the property.

o   how many people are living there.

o   If they have pets per the lease agreement.

Initially, there will be an increase in work orders and expenses, but we are confident that over 12+ months there will be a reduction in expenses and turnover. As always, normal wear and tear or items outside of the tenants’ control will be charged to the owner (the tenant may be responsible when -neglect, misuse, or disregard). If you have any questions, please fee feel to reach out to me directly via phone, text or email.

Thank you!

Adam Bartomeo

239-339-3969

AdamBartomeo@Bartomeo.com