approach

The foundation of Indigo's property management approach is based upon real apartment investment and asset management experience. In other words, our approach truly was developed from an apartment investor's perspective.

Our team's primary objective is to maximize our client's apartment value, which correlates to maximizing net operating income. Given the myriad of details and variables involved in apartment property management, we recognized early on that the best actionable plans were developed by using a consistent framework to assess opportunities and hurdles. Big picture, that's the key to our success!

This consistent actionable framework is referred to as the "4-P Approach" by our team. The 4-P's are no secret however it's the sequencing within the framework that has a huge impact on apartment value. The same approach is applied in stabilized as well as apartment launch engagements. The 4-P's as well as the sequencing include:

1. People - 50%+
2. Product - 30%+
3. Promotion - 15%
4. Price (Pennies) - 5%

As an apartment investor, how many times have you been told by a property management representative that the solution to an occupancy hurdle is to provide concessions or simply drop the rental rate? That may be an easy way to gain occupancy but your investment value becomes the victim.

Property operational hurdles can be caused by any of the 4-P's however an honest look in the mirror by any property management professional would reflect that over 50% of hurdles are caused by deficiencies within the People factor. Unfortunately most property management firms are unwilling to look first at their People thinking it would reflect negatively upon their firm. People are the foundation to our business and they require training, motivation and support to succeed.

Although many say Product must sparkle, the reality is with clean, rent ready available apartments to show and strong common area curb appeal, our people will lease apartments. Experience reflects that over 30% of operational hurdles are caused by simple deficiencies with the Product that we are attempting to lease. It would be embarrassing for a property management firm to share with their client that apartments are not leasing because they have limited or no rent ready, vacant apartments to show however in reality it's the second most common factor.

With People and Product optimized, it's time to assess whether adequate qualified traffic is being driven to the community by Promotion. Our experience reflects that only 15% of operational hurdles are caused by lack of Promotion investments. Unfortunately it's common for property management firms to invest your funds in additional promotional tools aimed at driving more traffic to the community without first addressing People and Product.

After we ensure your apartment investment's People and Product are ready and sufficient traffic is being driven to the community, then Price can be fairly tested to ensure we achieve economic asset value optimization.

It's an effective, sequential, common sense approach that works very well to maximize net operating income. A client's financial analyst recently asked "what's your secret to success?" and after explaining Indigo's 4-P approach the conversation ended with the analyst stating "it's not brain surgery, is it?!"