Pioneer Realty Group is announcing the launch of M.REAP, the Multifamily Rent and Expense Analysis Program which guides multifamily property owners in better understanding how income and expense items at their properties compare to the current market. The M.REAP analysis and action plan represent a significant step toward enhancing property values by driving net operating income higher.
“Rent growth and expense control matter and are essential to adding value to any asset,” said Sean Flynt, a co-owner of Pioneer Realty Group. “Important decisions about a multifamily investment can only be made when there is control over property income and expenses and understanding the impact of current market dynamics.”
M.REAP is appropriate for all multifamily property owners, but according to Flynt may be especially beneficial to owners of small to mid-size properties and portfolios because they may be unable to easily access comparable market data.
“With or without access to market data, one of the greatest concerns of property owners is how a property’s rent compares to the market,” Flynt said. “It’s important for them to know if rents are competitive with properties on the block and in the neighborhood and if any money is being left on the table?”
Immediately behind rental income, investors want to understand if expenses—and service providers —are in order. Are services being performed by qualified professionals at pricing consistent with market rates? Again, according to Flynt, investors with small portfolios may be the greatest beneficiaries because they may not have the contacts, geographic concentration or experience to have a roster of service providers that are as efficient and cost-effective as possible.
With its management and leasing portfolio and operations team, Pioneer Realty Group has the experience and critical mass to maintain an extensive list of service providers. Further, with access to financials and/or invoices, Pioneer can effectively compare expense items: general maintenance, turnover costs, administrative fees, and utility expenses, among others.
“Regardless the size of an investor’s property or portfolio, it is always wise to assess and evaluate current rent and rent growth strategies as well as maintenance expenses and relationships,” Flynt added. “It is too important to the value of an asset or a portfolio, for a corporate owner or an investor looking to create generational wealth, to ignore.”
About Pioneer Realty Group
Founded in 2017, Pioneer Realty Group is a Chicago neighborhood-based real estate firm that represents rental property owners and building owners, homebuyers and home sellers by providing leasing, property sales and property management services. On an almost quarterly basis, the firm hosts PRG Homebuyer University to help first-time homebuyers, among others, navigate the various steps in buying a home.