When looking to do an acquisition, Jeffrey Adler, president of The Sanctuary Group, stressed the importance of understanding the resident quality standards of a property.
During a recent panel on smart buying strategies at the Apartment Finance Today Conference, Adler said it’s important for buyers to be clear on what rent models are going to look like going forward and to focus in on the last 20 leases and the residents’ credit scores.
Adler, who was formerly executive vice president and chief property operations officer at Denver-based multifamily giant AIMCO, also urged prospective buyers to seek out the service team to find out more about the quality of residents. They have a behind-the-scenes advantage and will provide a good background on the property.
He also urged buyers to look at the marketing plans and Web sites for a community to see what incoming demand looks like. “These are the details of underwriting that make a lot of sense,” he added.
