Nine months ago, we unveiled The Tallows, a promising investment opportunity in Peoria, Arizona. It was envisioned as a valuable addition to our portfolio, and we're thrilled to report that it's met our expectations!

The Tallows has achieved impressive occupancy rates, ensuring a consistent and reliable income stream for our investors. We've seen strong performance across unit types, with 1-bedroom units averaging $1,219 initially (underwritten value). This number dipped slightly at the end of the quarter to $1,188, but we remain confident in raising rents within a range of $800-$1,900 per month. Premium renovated units, boasting modern upgrades and desirable features, will naturally command top dollar within this range. Similarly, 2-bedroom units started at $1,466 (underwritten value) and climbed to $1,474 by the quarter's end.

To empower you to make informed decisions and understand the nuanced performance of individual units, we've provided a downloadable report. This report delves deeper into how each unit stacks up against market rental rates and showcases their contribution to the overall success of The Tallows.

1. Strategic Initiatives and Embracing Change

The dynamic nature of the rental market demands a flexible and adaptable approach. While traditional online platforms like Apartments.com haven't yielded the results we initially anticipated due to high commission fees, we've successfully pivoted to platforms like Zillow and the like. This strategic shift has allowed us to attract qualified tenants without sacrificing profitability.

Furthermore, we've implemented successful strategies to decrease delinquency rates, fostering a culture of responsible tenancy and minimizing late payments. These initiatives include tenant incentive programs like on-time payment raffles and contests, creating a positive reinforcement system that encourages residents to prioritize their rental obligations.

2. Prioritizing Conflict Resolution

We prioritize proactive tenant communication and conflict resolution. This commitment is reflected in our zero eviction record for March at The Tallows. Throughout the year, only 6 evictions have occurred, showcasing our ability to efficiently address tenant concerns and minimize disruptions for both residents and the property's overall performance.

3. Strategic Capital Expenditure (CAPEX) to Maximize Value

We haven't been content with simply maintaining The Tallows; we've actively enhanced the property and its value proposition for tenants. Strategic capital expenditures have resulted in the completion of renovations on 10 units. Eight units received comprehensive "platinum" upgrades, boasting modern finishes and top-of-the-line features. The remaining two units received essential upgrades that addressed key areas, ensuring they remain competitive within the rental market.

Currently, two additional units are undergoing renovations – one receiving a platinum upgrade and the other a partial upgrade focusing on crucial elements. Completing these renovations will allow us to maximize their potential rental income and strengthen our overall ROI for the property.

4. Investing in Amenities & Building a Community

Investing in The Tallows goes beyond brick-and-mortar improvements. We've undertaken several initiatives to enhance the overall tenant experience and build a strong sense of community. A rebranding initiative, including new signage, creates a more modern and inviting first impression. The fitness center received a complete upgrade by May 15th, addressing leaks and other necessary repairs without requiring building permits. This ensures a safe and functional space for tenants to enjoy, promoting a healthy lifestyle within the community.

5. Marketing Strategies & Growth for Long-Term Success

While The Tallows has performed exceptionally well so far, we're constantly seeking ways to optimize its performance and ensure long-term success. We're exploring referral programs that incentivize existing tenants to recommend The Tallows to their networks. This leverages the power of word-of-mouth marketing and attracts qualified residents who are familiar with the property's positive attributes.

Additionally, we launched targeted flyer campaigns in strategic locations to reach a wider audience of potential renters. These initiatives, combined with our existing efforts, will ensure a steady flow of qualified leads and maintain a high occupancy rate.

6. A Thriving Community Breeds Success

We prioritize a balanced approach to property management, focusing on positive leverage and avoiding aggressive rent increases. This strategy has proven successful in navigating market fluctuations and ensuring long-term sustainability for our investments.

The emergence of a new downtown development featuring restaurants housed in shipping containers, is a welcome addition to the area. This project is expected to enhance the neighborhood's appeal and further increase competition, especially considering the affordability of purchasing a house within a good school district. This confluence of factors creates a thriving community that will continue grow and prosper, potentially attracting more people to the area and, therefore, potential tenants.

7. Next Quarter Goals and Ongoing Commitment

We're continuously exploring CAPEX options for further property improvements. This may include painting some buildings to refresh the exterior and adding gazebos to enhance the property's amenities and provide tenants with additional outdoor living space.

We remain committed to pushing rents strategically, aiming to maximize your investment returns while maintaining a healthy balance with market trends and maintaining a high occupancy rate.

We're excited about The Tallows' continued success and look forward to keeping you updated on its progress.

The Tallows is a shining example of our commitment to strategic investment and proactive property management. We leverage our expertise to identify high-potential properties, implement value-adding improvements, and foster a positive tenant experience. This comprehensive approach ensures a strong return on investment for our clients while cultivating vibrant communities for residents to enjoy!