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VICTORIA CASE STUDY 2015

Victoria Case Study

Victoria (Head office)
Phone: (250) 658-8060
Toll Free: 1-877-907-8060
Fax: (250) 658-8067
Regional Manager: Dale Schuss
Email: info@randallnorth.ca
485 Garbally Rd, Unit D
Victoria, BC V8T 4T3

Mailing address:
PO Box 53531
Victoria, BC V8X 5K2
Canada

Prince Rupert 
Phone: (250) 627-1414
Fax: (250) 658-8067
Regional Manager: Dale Schuss
Email:dale.schuss@randallnorth.ca

Mailing address:
Unit 484 Ocean Centre
309 2nd Ave W
Prince Rupert, BC V8J 3T1

Cowichan Valley
Phone: 778 356-0021
Fax: (250) 658-8067
Regional Manager: Gloria Carvalho
Email: gloria.carvalho@randallnorth.ca

VICTORIA CASE STUDY

2015

THE CHALLENGE

Taking on the management of 23 units with a high vacancy rate and low revenue and improve on it by effective marketing and proper tenant screening.

BACKGROUND

At the end of 2013, Randall North took on 23 units for a client unhappy with their current management.  The revenue was too low due to a 22% vacancy rate that had been that high for months.  One unit was vacant for more than 12 months.  The marketing of the units was not aggressive, but costly using traditional methods that no longer work in a more competitive situation.  Due to the low volume of inquiries, good tenant selection was sacrificed at times just to get the units rented; however these tenants eventually stopped paying rent and had to be evicted.

Free online marketing was used by Randall North to reach people who were interested in good, clean, updated affordable housing.  Visits to the property were frequent and a clear strategy was developed to select better tenants by way of increasing the number of inquiries.

By May of 2014, Randall North had dropped the vacancy rate to 4% and overall revenue had increased by over 15%.  There was still work to do of course.  When tenants would turnover, work was done on the units vacated to an amount recoverable in 18 months, by way of increasing the new rent.  This provided the owner a better rent, a better tenant who would stay longer (tenants like new upgrades), and a relatively short payback.

By November 2014, one year after taking over the portfolio, the vacancy rate was now 0% and the revenue was now 24.9% higher than a year before.

SUCCESS

It is now February, 2015.  The buildings are performing well and the tenants placed are enjoying their homes.  The vacancy rate remains at 0% however the revenue is again up since November 2014 (three months ago), mostly by rent increases that can now be delivered with confidence and not with fear of another move out.