October 28, 2024
Linda Coburn, Vice President, Asset Management
Real estate investment success hinges on several key factors that influence profitability, risk, and long-term value. Meanwhile, at the very root of value creation is the resident experience. A positive resident experience is critical to enhancing investor returns.
With more than 37 years of experience in multifamily asset management, NexMetro’s Linda Coburn is keenly atune to the correlation of profits and resident satisfaction.
“Fostering a positive resident experience drives higher occupancy, lowers operational costs, and ultimately increases the value of the investment,” says Coburn. “These factors combined with happy residents help increase NOI (Net Operating Income) and can help foster a positive cycle of returns.”
NexMetro’s goal is to create value for both our Avilla Homes residents and our investors. They are intrinsically linked. Coburn and her team are focused on the measures that impact positive results.
* Occupancy Rate: The percentage of rented units compared to vacant ones.
* Resident Satisfaction Scores: Surveys or ratings provided by current residents.
* Turnover Rate: The percentage of residents who move out annually.
* Average Rent Per Unit: Changes in rental prices over time.
* Net Operating Income (NOI): A key indicator of financial performance influenced by rental income and
operating expenses.
Over the past few years, higher labor and materials costs, and a glut of new multifamily supply spurred by low Covid-era interest rates challenged these measures. Multi-year highs in interest rates also caused lower valuations and higher debt burdens.
The silver lining is that this appears to be changing quickly in NexMetro’s Avilla projects’ favor.