MB 272: Best Practices for Multifamily Asset Management – With Kyle Mitchell
Asset management may not be as sexy as raising money or chasing deals. But it’s the aspect of multifamily investing that makes a deal successful—or not. So, what’s involved in the operation of an apartment building? And how can an asset manager work with their property management team to solve problems together?
Kyle Mitchell is the cofounder of Asset Management Mastery, a platform designed to help multifamily investors become best-in-class operators. Kyle owns and operates a portfolio of 400 units worth $400M in Tucson and Phoenix, Arizona. He is also the coauthor of Best in Class: How to Manage Your Multifamily Asset, Avoid Mistakes and Build Wealth Through Real Estate and serves as a mentor with The Michael Blank organization.
On this episode of Apartment Building Investing, Kyle joins cohost Garrett Lynch and me to discuss the role of a multifamily asset manager, explaining how he conducts monthly secret shopper audits and what KPIs he tracks on a regular basis. Kyle describes what attracted him to the asset management side of the business, discussing how he partners with the property management team to get the best out of a property. Listen in for Kyle’s hands-on approach to renovation management and find out how he is navigating material and labor shortages in the aftermath of the pandemic.
Key Takeaways
The role of a multifamily asset manager
- Hold property management company accountable
- Partner with PM team to get best out of property
What attracted Kyle to asset management
- Background in operations at golf courses
- Identified gap in that side of multifamily business
Why Kyle moved into the market where he invests
- Easier to build relationships as boots on ground
- Opportunity to grow portfolio
How Kyle conducts a monthly secret shopper audit
- 80-point system (send scorecard to PM team)
- Different phone #, email address and question
What key performance indicators Kyle tracks
- Marketing metrics (# of leads, conversion ratio)
- Lease trade-outs, rental and RUBS comps
How Kyle handles multifamily renovation management
- Property management company has in-house team
- Track tasks on Trello goal to finish in 21 days
How to navigate the current material and labor shortages
- Order in bulk and secure storage on site
- Build deep roster of vendors
What Kyle does when a property manager isn’t performing
- Direct line to owner of PM company
- Weekly call to discuss cause of issues
How to be proactive when it comes to asset management
- Partner or team member with ops experience
- Reach out to peers in multifamily industry
Connect with Kyle Mitchell
Asset Management Mastery Podcast
Passive Income Through Multifamily Real Estate Podcast
Resources
Learn More About Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Download Michael’s Free eBook: The Secret to Raising Money for Your First Apartment Building
Kyle Mitchell on Apartment Building Investing EP172
Neal Bawa’s LASAL Revenue Management System