Today’s article will be a bit unusual. However, by sharing examples from our day to day operations, we hope to give you a glimpse of our management approach, and specifically how we apply our value-based decision making in practice. As a reference our mission and philosophy is included below.
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Mission and Philosophy
- Value-based decision making and staying true to our mission of helping others achieve their financial freedom while improving the local communities and creating a pleasant, safe, and clean home environment for our customers (tenants).
- Prudent underwriting and risk assessment.
- Focus on execution via a solutions-oriented and results-driven approach.
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What does values based decision making really mean? While we remain focused on operating properties profitably, we are also vested in the well-being of our customers (tenants) by creating a pleasant, safe, and clean environment that they can call home. This is rooted into our personal WHY. It is also our belief that this approach benefits all parties involved in the long run (tenant-property owner-investors-local communities).
Two recent examples come to mind in reference to the above.
Case 1: The tenant in one of our properties called noting coloration and smell of the water. That particular property was on a well and as such, prone to that. We immediately took to action to source the optimal solution to remedy the issue. In addition to offering the required rent abatement until the issue was resolved, we also offered to put up the tenant in a hotel and offered a complimentary gift certificate so they can treat themselves to a nice dinner or a spa. Neither the hotel, nor the gift certificate were required by local laws.
Case 2: The tenant in another property called noting the bathtub is stained. Upon inspection of the property and after review, we ultimately decided to update the bathroom (vs. resurfacing the bathtub only). While one could argue the bathtub staining was likely a result of the tenant’s negligence, as it was in a good condition upon their move in, we decided to apply a longer term (vs. a band aid approach), which ultimately resulted in both tenant satisfaction, retention, and less maintenance over time.
It is our hope the above examples would also translate into longer term benefits such as: tenant satisfaction (thereby enabling us to more easily raise future rents), tenant retention (thereby resulting in reduced turnover), and overall expense reduction (by addressing maintenance requests promptly). Thus, while there may not be an obvious impact to the bottom line, there is some correlation between value-based decision making and a healthier bottom line – an approach, which ultimately benefits both the customer/community and the business/our investors.
We do not share the above to seek accolades but rather to better illustrate how our value-based decision making translates itself into the day to day management of our properties and can result into a win-win-win for all parties involved.
Should you have any questions or want to learn more about real estate investing or for an overview of our target markets, please reach out to info@dbacapitalgroup.com.
Disclaimer: The information presented does not constitute legal, accounting, tax, or individually tailored investment advice. Past results do not represent or guarantee future performance.