Management Strategy

Trinco’s management strategy is one that focuses on optimizing a property’s net operating income and meeting an owner’s investment objectives by utilizing some of the following methods below. This is an outline and summary of Trinco’s primary strategy for working with market rate properties, and we modify this strategy to work with government regulated or subsidized properties as the regulations permit. This is a proven, effective, and time-tested strategy that Trinco is always working to improve, but that certainly maximizes multifamily property investors’ returns in the near and long terms.

To make all of this happen takes a trained and skilled onsite management, leasing, and maintenance team. Trinco maintains a very de-centralized management philosophy with regards to the management of the assets it oversees because we believe the return on an apartment owner’s investment starts and ends with the day-to-day performance of a property’s onsite team.

We first identify a competitive set of five or six properties in the market that regularly compete with our subject property. We thoroughly shop those properties to determine their true net effective rents in consideration of any rent specials, concessions, amenities, or other leasing incentives that they may offer. We then position the subject property’s rents at a level to compete well within its submarket while taking into account any macro issues occurring in the property’s market, such as net job gains/losses, transportation infrastructure improvements/challenges, additional household formation growth or decoupling or losses, rental seasonality such as that associated with student housing or properties located near major universities or local employment seasonality, demographic preferences, new construction pipeline and when new projects will begin their lease-up phase, and any other overall supply/demand issues within the local market.

Trinco proactively manages an asset’s revenue and starts with focusing on minimizing a property’s loss due to vacancy. This is revenue that can be lost forever if we do not seize the day. We set rental unit pricing at a level that will work towards our revenue optimization goals.

We underwrite and qualify residents upon the time they make a rental application and put into place an aggressive rent and other income collections policy and procedure for ancillary charges that are payable under a Resident’s written lease.

As part of this process, we proactively manage out jagged changes in leasing velocity by ensuring that not too many leases expire in any given month and the lease expirations trend with the rental market’s seasonality so that we renew leases or re-lease units when market demand is the highest and consequently able to procure the best prevailing market lease rate attainable.

Resident retention is a huge part of Trinco’s program. We believe the resident retention process starts from day one of the first interaction with the resident.

Upon management takeover of a property, Trinco focuses on addressing resident life safety issues quickly and thoroughly. Items such as ensuring that properties meet fire code standards and deterring crime activity at a property become first priority and some success needs to be shown before we are able to successfully ask residents for rent increases or to refer their friends to live at the property. This part of the process begins Trinco’s focus on quality of place at the asset. Without this, leasing to new residents and retaining current ones at desired rental rates becomes a unbearable challenge.  We do this with thoughtful cost-benefit analyses, for all expenditures at a property.

Annually, Trinco addresses a property’s real estate tax costs. We work to address these through annual reviews and, if necessary, appeals to ensure that the values are fair to property owners. As part of our risk management review, Trinco assesses a property’s insurance policy to ensure that replacement cost values are at a reasonable value.

Property level payroll expenses are considered. Trinco processes all property payroll expenses and handles benefits management in-house. Due to having additional scale, we are able to provide attractive benefits packages at our properties at a lower cost to the property, consequently ensuring that we attract, retain, and motivate the best and most qualified onsite staff while minimizing the associated cost in an effort to lower overall operating expenses and optimize a property’s net operating income.

We work to employ “green” policies and procedures through proactive and consistent utility management practices.

Given that most apartment leases are modified gross leases, repairs and maintenance expenses are generally some of the largest and most variable expenses with which a multifamily property must contend. This creates ample opportunity for expense savings as well as enhancement to the leasing and resident retention processes when repairs and maintenance programs are administered well. Trinco focuses on very timely turnaround of all resident maintenance service requests, which is an issue that can very much contribute to a resident’s lease renewal decision, especially when a higher rental rate is considered. Furthermore, a thoughtful, customized, and consistent preventative maintenance program can considerably allow for a more efficient unit turnaround or make ready process as well as significant expense savings through being proactive at a much lower and timely-distributed pace, than being forced to address urgent maintenance or repair situations at a higher and unexpected cost. Through this process, Trinco addresses and prioritizes necessary capital expenditures for a property. This is important to maintaining a property’s physical plant and optimizing revenue potential and minimizing associated maintenance and other expenses over time.

Trinco continually assesses property administrative expenses to ensure that these are maintained at a reasonable level and the associated benefits exceed the costs. This is an often underestimated or improperly underwritten expense that can leave properties without sufficient room in their budget to implement necessary efficient systems for revenue optimization and the handling of routine property administrative functions over time. However, it can also become an area of waste or excessive if not property evaluated on a regular schedule.

While remaining sensitive to a property’s marketing cost-per-lead and cost-per-lease, Trinco formulates aggressive and smart marketing programs that are beneficial and drive a property’s bottom line. This proven strategy is what contributes to a property’s rent growth over time. Reputation management, consistent branding, and guerilla marketing are a very important part of this strategy.

Through its obsessive financial focus, Trinco operates its overall expenses below market, while outperforming its market and sub-market competitive sets in economic occupancy and revenue growth over time. As we do this, we ensure that all routine property administration is handled and addressed. As part of this, Trinco strives to maintain positive relationships with government bodies who possess oversight and jurisdiction over the properties that it manages.

To be able to ensure the we are constantly winning and meeting our short and long term objectives, it is important for us to do an accurate and thorough job of keeping score. Trinco has superior accounting and owner reporting systems. As part of this, we maintain well considered cost control and expense management systems. Our use of technology helps us ensure that these processes are efficient and transparent so that quick and beneficial decisions can be made and bureaucracy can be kept out of the process.

Trinco’s continual focus on emphasizing its mission to its team members, suppliers, and beyond as it focuses on optimizing a property’s net operating income is absolutely necessary to meet and exceed its multifamily property investors’ return expectations.

For all of this, Trinco looks to provide significant financial value for multifamily property owners and investors beyond the cost of its fees. That is what keeps us happy and our clients’ beyond satisfied.