How landlords can maximize their current assets

When the tough gets going, the going gets good management. With the current economy and the uncertainty of the real estate industry, there are now plenty of landlords thinking of what they can do to maximize their current assets. I get almost a dozen calls a week from potential clients and fellow building owners to ask what I am doing to take advantage of the current situation. Being that I am a full time hand's on manager I think the following tips should be considered to capitalize on their property. I am constantly going over past and current expenses to make sure that I am not letting anything slip between my fingers. This includes going over future budgets and last year's expenses. Even though I have established long-term relationships with my current vendors they must continue to stay competitive as there is competition knocking on my door daily trying to gain my business. Other things you should be tracking are your inventory of products/supply. What are your superintendent and staff ordering? Did you really need to order two dozen door knobs? A pallet of paint? If so, where is it going? Even though it sounds like your team is being productive and doing work at your location, it is still important to watch your expenditures cautiously. This is not the market to start stocking up on unnecessary items. Who is on your payroll? Are you paying your superintendents and porters extra for preparing an apartment, if so would it be more cost effective to bring in an outside team? Just recently, during an audit of a portfolio of properties, I came across a situation where the building was paying almost $160,000 in tub glazing and floor work. After evaluation the situation, an outside team of full-time guys were hired and this will save the company almost $100,000 by year's end. Your payroll is usually your largest expense when running a multifamily property or business. Are you checking your bills and invoices from vendors? When you call your electrician and tell him that apartment 301A needs a new outlet put in, at the end of the month do you remember that apartment number? Would you remember if you approved multiple units? What happens if your electrician wrote 301A, 302B and billed you for both? These are the days that you should be watching your pennies and running a tighter management plan. You should also reevaluate who you have running your building if it is an outside management company. Are they going after your arrears? How often are they visiting your property? What are they doing to control the vacancy? We are in an economic situation where most property owners are feeling the pinch and are not sure what tomorrow will bring. With that in mind you should constantly be keeping an eye on your location(s) and educating yourself as much as possible in this climate so in better times you are on top of your game. Michael Kaplan is a district manager at Shamco Management Corp., Brooklyn, N.Y.