Our first acquisition in the U.S. took place in October 2020 in Colorado Springs, CO. We purchased a distressed asset for $13.9 million USD comprised of six buildings on three separate lots with a total of 129 units. We are now almost a year into the redevelopment process and looking at a successful transformation of the property.

We have conducted extensive exterior and interior renovations, added attractive amenities, and unlocked value through strong and active asset management. Bettina Oslanski, Vice President, U.S. Asset Management, explained how we demonstrate to our residents that we take care of the property and community and how the renovations improve the overall living environment.

“We identified the opportunity to transform a collection of separate underperforming assets into one contiguous and well-managed community. The pivotal change we introduced was the removal of fences between the properties and connecting the three lots by extending the pavement, allowing us to join the parking lots,”

Bettina added that all but one of the exterior projects are complete, and that the interior renovations of roughly 75 per cent of the suites are estimated to be completed in Q1 2022. The total budget for the project was just under $3 million USD.

“We have helped transition the neighbourhood,” Bettina said. “The revitalization of the area had already gained momentum through significant capital injections into other assets on the block — we realized that this presented a particularly favorable environment for our investment and redevelopment efforts.”

The interior renovations follow the natural turnover of this asset, which means suites will be renovated as residents move out, allowing us to avoid “renovictions.” The suites have seen extensive work — we’ve repainted, replaced flooring, cabinets, and vanities, as well as installed new light fixtures, faucets, doors and door handles. We have also established new amenities such as a dog park and barbecue area, which help create community at the property.

This work has helped elevate the asset to a higher standard. We inject capital where it makes the most sense to achieve positive leasing trends, high retention, and maintain a good reputation. With the population of Colorado Springs expected to grow at twice the rate of the U.S. average, we believe that Colorado Springs and our presence in the market contribute to our continued growth and excellence in the multi-family market.

Leaning on the experience of a local property management company, their team was able to provide valuable insight into the market and what they thought the asset needed. The property managers were involved during the due-diligence process to inform our assumptions and give recommendations on capital projects with the greatest return potential. Our team researches and analyzes markets and assets with the objective to streamline operations, realize efficiencies, facilitate net operating income (NOI) increases, and improve the resident experience.

For our community in Colorado Springs, the rebranding of the combined property from Mallard Meadows to “The Monroe” marked a significant achievement in the redevelopment process. Since January, we have seen a remarkable increase in NOI of 64 per cent. “After purchasing for $13.9 million USD and investing another $3 million USD, current NOI trends suggest a significant increase in the overall valuation of the asset to somewhere in the $20-25 million USD range,” Bettina said.

Our data-driven market selection model can be a catalyst for positive performance, and we strive to enhance the market momentum through capital expenditures focused on items that improve the resident experience, such as investment into amenities and curb appeal.

“The model helped compile a short list of cities that are more attractive than others, and Colorado Springs is ranked in the top three through every iteration we’ve run,” Bettina said.

With the U.S. having strong commercial real estate data available on cities and markets, it has allowed us to develop a model that digests variables such as employment systems, unemployment rates, industry diversification, and rent growth forecasts.

Due to its rapid growth, the U.S. is an enticing market for us as we seek other assets to add to our portfolio. “More and more people are jumping from larger, more expensive markets to secondary markets for a better cost of living, and that migration pattern has provided new opportunities for us — especially given our recent entry to the U.S. market,” said Bettina. “We are focused on where we strategically target next.”

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them. 

Avenue Living Asset Management has aggressively grown its portfolio of multi-residential rental units in the Calgary market in less than two years with a strategy to continue ambitious expansion.

Two years ago, Avenue Living had less than 100 units in the Calgary and area market, explains David Porter, Avenue Living’s Senior Vice-President of Operations for Southern Alberta. We have now surpassed 1,000 units with our latest acquisition in the southwest of Calgary.

“We’ve grown from being a relatively small presence in Calgary less than two years ago to over 1,000 units today,” explains Porter, adding that the growth has consisted of properties both large and small.

“Despite the recent challenges in the oil and gas industry, Avenue Living has found that our target market — workforce housing — is still rewarding us with residency. They find our affordability and the product offering fits their needs,” says Porter, “There’s opportunity here where we can buy strong assets, with a good unit mix, in an area that is growing and diversifying its economy.”

The Right Market

Uplands Manor, which was constructed in the community of Bankview in 1965, fits the bill both geographically and operationally for Avenue Living. In the coming years, we plan to make capital improvements to the vintage building to keep it up to date and comfortable for our residents.

Avenue Living, which has 12,500 residential rental units across Alberta, Saskatchewan, Manitoba and into the United States, completed the purchase of our largest acquisition to date — 1,566 apartments and townhomes in Edmonton at the end of June.

“Calgary is now second as far as number of units in our company, just behind Edmonton,” says Porter.

“Our occupancy in Calgary has always performed extremely well. We buy in the right areas of town and there’s a lot of inventory that fits the type of acquisitions we target.”

Porter says the overall occupancy is 94.2 per cent for Calgary residential properties, with the Calgary portfolio making up about eight percent of the company’s overall multi-family portfolio. Beyond that, the city is affordable and offers great lifestyle factors for residents. Calgary gives people access to beautiful parks and amenities, and is just a short drive west to the Rocky Mountains.

“We’ll continue to buy in Calgary. We’re aiming to strategically grow in the Calgary market when those opportunities arise,” adds Porter. He says that the properties Avenue Living purchases in Calgary are maintained to a high standard, and, when coupled with the organization’s strategy of making capital improvements, Avenue Living can deliver quality but affordably priced homes that fit our workforce housing demographic. Even with COVID-19, this segment of the economy has remained stable.

Investing in Our Backyard

Being a Calgary-based organization, we feel it’s important to invest in our own backyard and a reason why our portfolio has burgeoned here in the last two years.

The proximity of the Calgary properties to our head office allows us to test new initiatives such as signage and suite standards. It’s also a great opportunity to develop internal staff training programs. “Avenue Living is focusing on our staff and their ability to deliver resident satisfaction. Those training programs are critical to our future,” says Porter.

He says the expansion of the Calgary portfolio has also triggered employment growth with Avenue Living and is home to many employees that make up our platform which allows us to quickly grow and scale as we acquire more assets.

We are proud to have remained a net positive employer throughout the pandemic, when many Canadian businesses were forced to lay off some or all of their teams.

“We’re providing employment to a significant number of Calgarians, and intend to continue that growth,” says Porter.

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

Avenue Living has had a strong and solid presence in the Edmonton rental market for many years. We further strengthened that presence with the recent portfolio acquisition of 874 apartments and townhome units in the Hermitage community of eastern Edmonton. This acquisition, Avenue Living’s largest to date, further solidifies Avenue’s strength as a leader in the multi-family real estate investment space, and as one of Canada’s leading Real Estate Investment Trusts (REITs).

In what was a triumphant week for our organization, Hermitage represents one of three large Edmonton acquisitions that helped push our assets under management past $2.8 billion, highlighting our ambitious and continued growth.

When it comes to geography, we are agnostic in where we invest. We focus on markets where the fundamentals hold up, and those fundamentals keep bringing us back to Edmonton. The market has the right price, customer, and location for us to successfully execute our investment strategy.

Nick Buffum, Associate, Investments for Avenue Living Asset Management, notes how well maintained the properties are, and what made the area and units so desirable. “It is a fantastic opportunity for us to acquire a portfolio of assets that has been owned and operated by a single group since they were built. The pride of ownership is evident when you walk through these properties and see how well they have been maintained. From an operational standpoint, we are able to take advantage of significant economies of scale with this acquisition and grow our existing Edmonton portfolio,” Nick said.

“The properties are well taken care of, the interiors are clean, and all they’re concentrated in a desirable area.”

Because the properties were well taken care of, we expect they’ll require minimal renovation.

The condition in which the units were kept was a big reason why our team focused on the properties. It’s an opportunity to add 874 units to a burgeoning portfolio in a node that we have a proven ability to execute in. This was a strategic and well-researched investment in an area that offers many lifestyle choices.

This was an opportunity where we felt we could grow with the community and invest in a portfolio of buildings that have been kept in pristine condition. Its longevity was an attractive factor.

The community of Hermitage is located near the Yellowhead and Anthony Henday ring road, giving it strong access to other areas of the city.

The Hermitage neighbourhood is ideally located adjacent to Hermitage Park, on the North Saskatchewan River Valley, and is complete with ample green space and local amenities in the neighbourhood. It takes 15 minutes to get downtown Edmonton, 10 minutes to get to Sherwood Park, and the beautiful river valley is just a short bike ride away.

It’s important for our customers to have near city-wide access, offering the opportunity to live in a quiet neighbourhood that is well taken care of while still being close to amenities.

Of the 874 units in the Hermitage Portfolio, there are 548 apartments and 326 townhomes. The demographic within those units is vast, says Nick. “We have everybody from a single 20-year-old all the way to a family in a three-bedroom townhome.

“There is a place here for everybody,” he says, adding that units are also age-friendly and allow older residents to remain in a community they have called home for a long time.

The properties’ continued strong performance complements our presence in Edmonton as it brings scale into a major market in a concentrated, desirable area of the city.

The acquisition adds to our competitiveness and positions Avenue Living as an institutional player on many levels.

“This is the biggest acquisition that we’ve ever done,” Nick says. “It shows that we’re able to execute on an acquisition of that size and brings us to the forefront, not only in Edmonton, but Canada-wide. It demonstrates that we are able to execute from a capital position and operational standpoint, which is great for visibility.”

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

Running a flourishing business with billions of dollars in assets under management (AUM) requires a sound and astute investment strategy.  For Avenue Living, our growth from 24 doors in 2006 to more than 12,500 doors today is a testament to our organization’s highly researched investment strategy and all that goes into targeting specific markets, cities, and buildings to reposition.

We sat down with Jason Jogia, Chief Executive Officer, Opportunity Trust and Chief Investment Officer, Avenue Living, to glean insight into how we make such strategic investments, and what we offer to our residents.

“Our business is rooted in a number of different principles, and we know our customers,” Jason said. “Typically, when you have a business model to serve those customers, you have to build an infrastructure to appropriately serve them and provide a housing experience that would be deemed best-in-class.”

We provide homes to people for attainable rent prices, while still offering an institutional level of customer service. As an organization, we have consolidated buildings that would be classified as low-density workforce housing buildings and built a robust management system to serve those customers to the best of our capability.

“We’ve taken an active approach to management, and we’re agnostic to geography. We’re going to go where the fundamentals hold up,” Jason said. “We’re across the Prairies right now because the Prairies have some of the most affordable real estate across Canada, and on the flip side, some of the most reasonably-priced rents. We have taken a significant position in properties and plan to continue to double down on the Prairies because there’s a lot of room to run.”

Since 2015, we have invested $340 million in capital expenditure projects, repositioning buildings across the Prairies, bringing stark improvements to vintage buildings and neighbourhoods.

We are able to buy assets below replacement costs, renovate those assets, and then reposition those assets for the same demographic, but provide a higher offering and ensure they remain cost-effective for that tenant base. We always have our eye on affordability, which, according to the Canadian Mortgage and Housing Corporation, means that rent is 30 per cent or less of a person’s pre-tax income.

We diligently research markets and areas with the customer experience at the forefront. Access to public transit, employment areas, and parking is important. We study those markets and demographics, taking a top-down approach with the macros in the market. We also look at historical data and dive into past economic cycles. It’s all part of our investment strategy.

“It’s what we’ve been doing for 16 years. We’re buying where the people are and where they want to live. The Prairie provinces have robust service and employment sectors. What they lack in population density, they make up with infrastructure. We aim to serve those people,” Jason said.

So, what does all this mean in terms of Avenue Living’s strategy and long-term outlook?

“A lot of these buildings were built in the 1970s, ‘80s, and ‘90s. They have been owned and operated by the same family and group for many years. We are seeing pressure for them to exit. Baby Boomers want out because real estate is hard to manage,” Jason said.

There are many assets and buildings, circa the 1990s and early 2000s where the same finishes, customers, and rents have not changed for years. For Avenue Living, those properties present a unique opportunity: we can acquire them at a deep discount, upgrade the finishes, and implement active management.

“We’re a business that knows our product. We take an owner-operator approach. We have built our infrastructure to manage it. We are in a once-in-a-generation wealth transfer movement where the opportunity to buy is there. It’s a self-fulfilled prophecy now after just over 16 years of getting here,” Jason said.

With any successful business, it’s the road already travelled that helps determine the future. “We are in a very interesting position. Our barriers to success are behind us. The road that’s in front of us — we have a window to capitalize on,” Jason said.

As we continue to raise capital, and deploy creatively, we create a sustainable value and model, and build a larger stream of revenue, creating more incremental dollars to reinvest into the organization. This is why we’ve been able to build a platform of services — including technology, property management, logistics, legal, business analytics, and marketing services — to support our growth and accelerate new ventures.

“A lot of people talk about investment strategy without talking about operations. They talk about investment strategy without talking about how the market is or the macros on the market,” said Jason. “But our investment strategy is our investment strategy because we are an owner-operator. This is a unique differentiator in the industry. If we weren’t an operator, we wouldn’t be buying what we’re buying. We are consolidating what needs to be consolidated.”

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

In today’s modern and fast-paced world, information technology (IT) is an integral cog in the wheel for successful companies. From dealing with employee questions and communication to storing and transmitting information, IT departments are tirelessly working in the background so people can perform tasks on a daily basis.

Technology improves efficiency and employee engagement, and helps companies expand and increase capacity. And all the while, it helps save time and effort and enhances company security.

For Avenue Living and its diverse group of companies, having a strong and complementary IT department in its arsenal is just one way we keep pace in an ever-changing and evolving world. Speaking with Nathan McAuley, VP, Information Technology/Information Systems, he expressed the importance of the IT department, how they help us function, how their team has grown and evolved throughout the years, and how they have managed themselves throughout the pandemic.

“To me, it’s small incremental steps in the right direction towards getting better every day.” Nathan has been with Avenue Living since 2019, watching the team consistently expand. “We’ve seen immense growth in a number of ways, from adding people (six when Nathan started to 13 present day) to managing projects, business analysis, and analytics” he said, adding that the amount of tech projects the team is undertaking has ratcheted up. The Avenue Living team has rapidly grown over the last serval years, adding to the intensity and heightened need of a strong IT department.

Technology plays an important role in all of our departments. Effective execution of new technologies has become more critical as we continue to expand. To ensure our ongoing success, the IT department continually has taken the necessary steps to be able to better serve our internal and external stakeholders.

IT has been there supporting our expansion, like when we founded two new Trusts, Mini Mall Storage Properties, and the U.S. Real Estate Trust, as well as other venture partnerships.

Nathan likens the IT department to enablers — they enable across multiple functions, and their goal is to get the person back up on their feet as quickly as possible, and to help them to do their job and not worry about technology. “We’re enabling the business to be better, more efficient, increase revenue, and do something through technology that they haven’t done before.”

Having a mind and eye on expertise in technology is a major focus for the department. They seek to understand what’s out there and what’s coming in terms of technology and how it can better the business or how it can be implemented. Expertise is a big piece of continual learning.

“If you’re in IT, you’re going to be learning new things that are going to challenge your assumptions, every single day, because what you said yesterday will probably be out of date already. You have to continue to challenge yourself and try to gain as much expertise as possible,” Nathan said.

Keeping pace with a rapidly evolving industry and sector is a challenge that Nathan and the IT department embrace through one word: curiosity.

“Being curious and understanding things at a detailed level helps you learn things that you don’t know and find out if things have changed. Curiosity at the foundational level in our team is something we want everybody to have.”

IT plays a key role in Avenue Living’s day-to-day functioning, and from a technology standpoint, is important to our successes and processes. IT has the experience and wherewithal to help support the business and what we want to do. They’re problem solvers.

Serving Avenue Living’s diverse needs requires an IT department that approaches things from a point of understanding and being agile on their feet, and adapting to unique and changing circumstances. Whether someone is having an issue with their laptop or tablet or an application issue, the IT department plays a large role as customer service and closely working with people.

“It’s our job to come in every day and be everybody’s comfort blanket,” Nathan said.

Acting as technology experts, IT has also been integral in working with Scrum, which is an agile framework that helps people and teams solve complex adaptive problems, while delivering products of the highest value.

With a focus on data and its tangible uses for Avenue Living, the IT department recognizes how it can be an asset across the board. Honing business intelligence and analytics to help predict the future helps us make strategic decisions, allocate resources, or change the way we look at things.

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

Healthy and vibrant community space and “age-friendly” buildings are a necessity for supporting older Canadians as that segment of the population continues to grow. Age-friendly properties are aimed specifically at the age 55+ demographic, and they are designed to promote independent living through a home that supports physical and social wellbeing. In Lethbridge, through our capital expenditure and repositioning of the Westwinds complex, Avenue Living has refurbished and refreshed a building to create a safe, bright, and welcoming community for age-friendly living.

Graeme Mitchell, Regional Vice President, highlights that Avenue Living doesn’t just buy buildings, we improve, reposition, and repurpose buildings in the market — taking health, transportation, community, safety, connections, finances, amenities, and supports into account.

“The concept is to make safe, affordable living spaces that are light and bright. It is a friendly environment from the moment you walk up to the building,” Graeme said. “It’s somewhere you would want to live if you’re an older resident. What we find with a lot of these residents is usually it’s their children who are helping them find a new home. So, if you want to put your parents in these suites, you can do so with the knowledge of their comfort and happiness, and knowing it is where you would want to bring your grandchildren to visit.”

Avenue Living’s platform gives us access to a range of experts, including those who helped us make the right improvements to ensure we serve this demographic well. We have increased accessibility within each unit via raised toilets, grab-bars in bathrooms and showers, and an oven shut-off in the case of a fire. The four-story building also has two elevators, helping to ensure accessibility for those with mobility challenges.

“There’s a mixture of suites available that have our new laminate flooring, and we are also keeping some with carpet because in an age-friendly community or complex, some people have wheelchairs or walkers and find laminate flooring slippery,” said Graeme. “We want to make sure we have a variety of options for potential residents to choose from.”

“We’ve been working on this strategy for the last few months. We were lucky to get a few of the suites renovated with these features before the residents moved in,” Graeme said, mentioning that if a resident moves out, Avenue Living renovates the space into an age-friendly unit. There has also been focus on the exterior of the building. “We have painted the exterior and balconies Avenue Living Communities green and added more exterior lighting to the front and back of the building. If you drive by Westwinds, it is the lit-up building on the street now and it really stands out,” says Graeme.

The property also had a large carport in the back of the building, which has since been removed to open the area up, making it more inviting for residents. Additionally, new grass is being added, as well as ornamental trees. For a fun and interactive way to bring people together, we will be changing the name of the building, and are involving the current residents in that process.

“We’re going to be engaging with residents and asking them for their input and having a contest to rename the building,” Graeme said.

This project, like others, shows Avenue Living’s commitment to affordable, safe, and comfortable living spaces. People never feel like they’re alone in Avenue Living complexes. There is a lot that goes into deciding how to accommodate all the aspects of age-friendly living, from research to coordinating teams. Graeme said David Porter, Senior Vice President for Southern Alberta, was the big driver behind the reposition. “He was in my position as RVP before he was promoted to SVP and I took over his region. He’s overseen the project and given me leadership I needed to push this to the next level. It has been a full team effort.”

Westwinds and its repositioning is also acting as a template for Avenue Living to follow for implementation in other communities. “Our vision of this project is to convert buildings in other markets into age-friendly communities,” Graeme said.

“We saw this renovation as an opportunity to help the community of downtown Lethbridge by repositioning and investing in this asset. Not only is it going to help the building and Avenue Living, it’s really going to help the whole block. The building is close to all major amenities, pharmacies, shopping centres, grocery stores, and transit. Its location makes it ideal for the demographic we are looking to serve here.”

This project has not only a tremendous investment for Lethbridge, but a good opportunity for us to test transitioning select properties into age-friendly communities, using Westwinds as a model.

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

Anyone who has managed a property knows there are a lot of moving parts. Managing multiple properties across diverse geographical locations can increase those complexities manifold. Throw in a global pandemic and things become even more complicated. Suddenly public health orders limit site visits, viewings, and document signings. And technology becomes a vital tool for keeping residents and employees safe and cared for. 

Avenue Living has used Yardi and other property management technologies since before the pandemic, as part of our commitment to running a paperless organization, improving efficiency, and customer service. So, we were prepared to adapt to new public health measures when they came into effect in March 2020. Our existing infrastructure made the transition to virtual viewings and digital lease signing easy, but we were also able to carry on our day-to-day operations smoothly because we had tools in place to manage them virtually.  

 

Building-Level Accuracy 

Avenue Living owns and operates properties across the Prairies, covering a broad geographical area. While we have teams in every market dedicated to in-person management, property management software gives us a big-picture view of all our buildings, but it also allows us a more granular view of each building.  

This view is especially valuable now, when public health measures have kept in-person visits to a minimum in order to ensure resident and employee safety. Clear communication is key when we’re trying to minimize how many people need to be on-site, and when. Yardi allows us to create work orders for our teams in the field and attach photos to ensure the information we capture is accurate, both about the job and its resolution. 

 

Increased Efficiency 

For many management companies with large portfolios, like Avenue Living, technology allows us to keep a close eye on how we fulfill work orders, address resident concerns, and communicate between teams. Our properties are spread out across several provinces, and technology like Yardi ensures all our teams are operating with up-to-date information. 

We’ve also integrated our listing services with our website, which helps ensure our listings are always up to date. In the past, our leasing specialists would have had to handle these updates manually but automating them frees them up to focus on finding the right matches for prospective residents — a task that’s much easier when they know they’re dealing with up-to-date information. 

 

Informed Decision Making 

“Property management is cyclical,” says Jeff Konechny, Avenue Living’s manager of enterprise applications. “Which means we can collect past data and use it to anticipate future results.” When we can analyze monthly and quarterly patterns, we can see how to improve our processes — for example, how we complete work orders or suite turns, or how our rental rate fits into the market. “We can also use the data we collect to look at the issues residents have raised with us and make informed decisions about what needs to be replaced or repaired, for instance,” says Jeff.  

 

Better Customer Service 

We operate from what we call a “single source of truth.” The information our call centre takes in reaches our Regional Vice Presidents and Regional Portfolio Managers, who make sure the right people are aware of and addressing the resident concern. The team in the field can generate work orders, upload photos, and add their notes to that same file. In the past, these might have been on paper or sent via email — there may have been documents stored in disparate locations. Now, everything is in one central, easy-to-access place. “Anyone can look at a file and see a lease addendum or a parking agreement or a concern when they need to, without relying on someone in an office to find, scan, and send it to them,” says Jeff. 

 

Future Possibilities 

We’re always working on ways to make our resident experience better. Our future vision involves technology, as we examine ways to create an experience that gives our residents the ability to do more online. “We really want to make Avenue Living the type of property manager that’s easier to connect with than any other property manager,” says Jeff.  

While we’re still developing these solutions, we’re using the suite of tools we have now to make that experience as seamless as possible, from the moment they contact us for the first time onward.  

 

 

This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them. 

It’s no secret that securing homeownership is becoming more and more difficult in Canada. With increasing costs, rising interest rates, tightening mortgage rules, record levels of debt and plateaued incomes, the barriers — for many — seem unsurpassable.

According to the Canadian Mortgage and Housing Corporation (CMHC) (2018), “housing is considered affordable if it costs less than 30 per cent of a household’s before-tax income.” Based on this statistic, 17 per cent of Canadians own homes are just within their budget. And although homeownership in Canada is considered strong, one in every four Canadian households spends 30 per cent or more of their pre-tax income on mortgage payments (Statistics Canada, 2019).

40 per cent of the Canadian workforce is made up of essential workers, such as police officers, firemen, teachers, nurses and medical personnel, who fulfill our basic needs and keep our communities safe. Some are well compensated, but despite being gainfully employed, the essential worker’s average wage, excluding healthcare workers, is almost 20 per cent lower than employees in other industries (McQuarrie 2020). According to Statistics Canada (2020a), many essential workers rent long-term as homeownership is simply not a financial reality.

Housing affordability impacts other demographics, too. For example, seniors and students both often struggle to find comfortable housing within their economic reach. Restaurant workers, delivery drivers, and even office workers earning a moderate income also struggle to find homes they can afford.

In a 2019 Globe and Mail interview, Chief Executive Officer of the CMHC Evan Siddall said, “We need to stop taxing density and call out the glorification of home ownership for the regressive canard that it is. Overpromotion of home ownership is counterproductive, increasing the division between rich and poor.” Housing experts are calling for creative solutions to increase density to make current land usage more effective, by turning residential single-family dwellings into ‘plexes,’ townhouses and low- to mid-rise buildings, accepting that long-term rentals are part of the solution.

This demand for affordable, attainable dwellings and walkable communities continues to grow, but city zoning regulations and market regularities promote urban sprawl, making this more and more difficult to meet without intervention. As the demand for this housing category increases, prices rise and communities begin to experience gentrification, increasing the gap between classes and fuelling our nation-wide housing crisis. Without affordably priced dwellings, communities risk instability in children’s education, community populations and individual health as lower and moderate income families make difficult trade-offs to make ends meet (Enterprise, 2014).

These obstacles barring working Canadians from owning homes creates immediacy for housing affordability. Residents shouldn’t have to depend on their government to supply affordable options for them; they need access to safe, comfortable housing options at a rate appropriate for their income.

We recognize this rising need for quality rentals and aim to serve Canadians across the Prairies. Everyone deserves access to quality housing, whatever income bracket they may fall under. That’s why we invest in multi-family units and bring focus to providing housing affordability to the Canadian workforce, the backbone of our society.

We proudly provide housing to accommodate those who are gainfully employed but fall short of homeownership. These individuals often earn an insufficient income to live in close proximity to work, but want to live nearby. The buildings we invest in are class B and C apartments, typically low-rise, older inventory with affordable rent because they are purchased, upgraded, and then rented at a rate that is much more attainable than a new build.

Compared to other asset classes, class B and C housing presents several advantages, including locations, unit sizes, vacancy rates, rental prices and growth opportunities. Affordably priced dwellings benefit not only its residents, but the community as a whole.

Benefits of Affordably Priced Housing:

Creates a stable community. The growing need for housing that is affordable to the everyday Canadian means that this type of property will always be in demand. Upgraded, affordable rentals support a growing and stable population while encouraging economic investment from those residing in and giving back to the local community.

Builds the local workforce. Affordable multi-family dwellings in a neighbourhood means continual community growth and livelihood. With more essential workers, seniors, and students in the community, services and offerings grow and helps maintain the local economy.

Encourages economic stability. Essential workers tend to be dependable renters and have steady incomes. In times of economic downturn, essential workers often experience income increases as they are needed more than ever, thriving financially while they keep us afloat.

Increases disposable income. Paying less for rent means residents will have the choice of how to spend their money. With lower debt levels and more disposable income, residents can put more money back into their local community, thus fuelling the economy.

Allows for walkability. By increasing density in neighbourhoods, we provide ‘neighbourhood living’ over ‘city living,’ allowing residents to easily explore their community on foot. This actively supports small businesses, promotes physical exercise and encourages individuals to get involved in their neighbourhood.

Lowers our carbon footprint. By providing housing near places of employment, we help to lower our residents’ carbon footprint by shortening commutes, giving time and convenience back to these individuals. In addition, we seek out existing buildings and reposition them through strategic capital improvements, a carbon-friendly alternative to building new.

Revitalizes our communities. In addition to lowering our carbon footprint, investing in vintage properties and repositioning them benefits the community, making it a more attractive home for future residents while maintaining an affordable rate.

The bottom line is simple:

For many people, there’s a trade-off between convenience and affordability.  But it doesn’t have to be that way. Properties that charge affordable rent benefit individuals and the community at large by increasing neighbourhood quality and stability, providing economic security and allowing Canadians to live in safe and comfortable homes.

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

From our very first deal, Avenue Living Asset Management has relied on our legal professionals to help make sure things go smoothly. In fact, Shelley Allchurch was one of our very first full-time team members, joining us as general counsel in 2010.

“We’ve been so lucky to have Shelley on our team right from the beginning,” says Avenue Living Founder and CEO, Anthony Giuffre. “She’s built an incredible team over the years. It has really evolved as Avenue Living has grown and she and her team have become an essential part of our platform.”

Today, our legal team includes 17 professionals — lawyers who are experts in real-estate law, securities law, corporate law, and risk management, as well as paralegals, in addition to an insurance risk expert and a contract management specialist.

“We’ve really expanded and adapted to meet the demands of the business,” says Shelley. As Avenue Living has evolved, we’ve called on the legal team to handle everything from typical tenancy issues and employment contracts, all the way to complex legal matters, such as multi-jurisdictional real estate acquisitions, M&A transactions, restructurings, fund formation and the negotiation and drafting of sophisticated commercial agreements. The legal team ensures the decisions we make and the actions we take are in line with local regulations and mitigate risk for our many stakeholders, including investors, residents, employees, and the communities in which we operate.

“Legal teams can often be seen as the naysayers,” says Shelley. “But that’s not our role. We’re here to support and facilitate Avenue Living in reaching our business goals. We do this by looking at the business through a legal lens and bringing a unique perspective to decision-making.”

While Avenue Living started out in 2006 as an owner/operator of multi-family residential properties, we’ve since grown to include a thriving group of companies that invests in the everyday, from self-storage to technology. These companies all have their own unique needs, and our legal team does a great job at managing most of these needs in-house.

The members of the legal team are partners in the organization. Legal touches every aspect of Avenue Living’s business. Their specialized knowledge and expertise serve us in so many ways — in large ways, such as mergers and acquisitions, and in smaller, everyday ways, like vetting our communications (including this blog post). They help us ensure we adhere to our organizational pillars, which guide our decisions every day.

“It’s vital that we understand the business strategy and objectives,” says Trevor Korsrud, Associate General Counsel to the organization, “so we can align with business units throughout Avenue Living and provide them with the guidance they need.”

Being part of an in-house team has meant stretching the legal team’s knowledge and abilities in ways not possible in private practice. The Avenue Living team touches many different aspects of law in their day-to-day duties, whether they’re providing counsel themselves or consulting and working with specialized experts outside the organization.

And like so many groups within this organization, our legal team regularly learns from each other, sharing insights and experiences as we take on new challenges, together.

“I’m so proud of the team we’ve built,” says Shelley. “It’s challenging, motivating, and validating work.”

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

From the top down, the team at Avenue Living is a group of continuous learners. We learn from each other and from industry leaders, but a lot of us also like to explore other aspects of human nature, including psychology, emotional intelligence, and what it means to be a good leader. Below, you’ll find some of our favourites — and maybe some new favourites of your own.

Dr. Angela Duckworth – Duckworth is a psychology professor at the University of Pennsylvania, science author, and the CEO and founder of the Character Lab, a non-profit that advances scientific insights that help children thrive. Duckworth studies the meaning of passion and persistence, or “grit,” a concept that resonates deeply with our CEO, Anthony Giuffre.

Book: Grit: The Power of Passion and Perseverance

Twitter: @angeladuckw

TED Talks: Angela Duckworth

Simon Sinek – Sinek’s books inspire leaders around the world, and our own leaders at Avenue Living are no exception. He’s on the “must-read” list for many here, for his optimism, his insights, and his conviction that we can build a better world together.

Books: Start With Why, Leaders Eat Last, Better Together

Podcast: A Bit of Optimism

TED Talks: Simon Sinek

Twitter: @SimonSinek

Brene Brown – Brown’s books also appeared on several lists. Barya Kabalan, VP of People and Culture, Aleena Lalani, Director of Strategic and Creative Services, and CEO Anthony Giuffre all find inspiration in her words. “The concepts are universal and they can be applied very well to business,” says Anthony. “What you’re really trying to do is understand your behaviour first and then others around you.”

Book: Dare to Lead

Twitter: @BreneBrown

Ray Dalio – The founder of the world’s largest hedge fund, Bridgewater Associates, is hailed as a renowned financial innovator. During his career, he pioneered investment strategies such as risk parity and currency overlay. His bestselling book, Principles: Life and Work resonated with Aleena Lalani, who found inspiration in the notion of “finding your winning statement” and in operating with “radical transparency.”

Book: Principles: Life and Work

Twitter: @raydalio

Dr. Kevin Leman, Bill Pentak – LOGYX CEO James Jung found inspiration in the insights from these co-authors and their focus on effective leadership, including ways to “infuse work with meaning” and “engage and energize your workforce.”

Book: The Way of the Shepherd: 7 Ancient Secrets to Managing Productive People.

The Economist – Our CFO Andrew Searby enjoys digging into this popular publication for a broader perspective on the world of finance. “I like to get a weekly world view of real estate and other industries beyond North America,” he says.

Barack Obama – The former U.S. President’s name popped up on several lists for his insights into leadership and human nature, including his willingness to “not be the smartest person in the room.” Kelly Mahajan, VP of Operations for Avenue Living Communities, enjoys his insights into what makes people tick.

Books: A Promised Land, The Audacity of Hope

Twitter: @BarackObama

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

“Our relationship with our residents starts on day one,” says Bernard Streeper, Senior Vice President for Northern Alberta. “The second they look up a suite or call us for more information, that’s the start.”

That relationship is at the centre of everything the Avenue Living Communities teams do, from the leadership team to the maintenance specialists. Led by three regional Senior Vice Presidents (SVPs), the teams manage approximately 10,000 doors in communities across Alberta, Saskatchewan, and Manitoba. Dividing the workload by regions allows leadership to have deeper knowledge of their markets and a more direct relationship with their teams and residents than would be possible with more centralized oversight.

Live and In-Person

On-site visits are key to developing that deeper knowledge and connection. The SVPs all make sure they can visit individual markets and buildings to see, in person, the successes and challenges their teams face. The challenges that arise in Saskatoon, for example, are not the same as those in Edmonton; and the challenges in Brooks may be different yet again.

“Being on-site is a great way to get to know residents. I guarantee you that if one resident shares their views with you, they’re not the only one who has those views,” says David Porter, SVP for Southern Alberta. The leaders also find it’s a great way to stay connected with and support their teams. “I like to say I’m really a facilitator,” says Bernard. “I really work for my team. I hear their challenges and help them get to the answer.”

The ability to visit in person also gives the SVPs a connection to networks in their broader communities, and the ability to establish relationships with vendors and trades they might not be able to from a distance. “We’re able to be more resourceful,” says Bernard. “I guarantee you there are things I hear about through my network that I wouldn’t hear about otherwise.”

“Whenever I visit a building, I look at it through the eyes of a resident,” says Graham Edge, SVP for Saskatchewan and Manitoba. “I look at the curb appeal. What would I think if I were coming home to this building? Is it safe and secure? Would I want my daughter living here?”

The residents’ first impressions are top of mind when SVPs inspect a newly renovated suite or common area, too, but the experience goes beyond that. “The property management business is not really about property,” says Bernard. “It’s about people.”

Working Together

Senior vice presidents work closely with each other — they meet with our Chief Operations Officer, Louise Elsey, every day, where they discuss their challenges and successes and share insights they’ve gleaned from their own unique experiences. “I have never met a better team or a more collaborative team than this one,” says Graham. “I’ve never seen a team that shares information the way that this team does. It’s amazing.”

“We all pull the rope from the same side,” says Bernard, of the collective effort it takes to ensure Avenue Living residents have the best experience possible. “We share the same goals and we’re driven by the same values,” agrees David.

That collaboration extends from the leadership through the entire team. Regional Vice Presidents also connect regularly to share information and ideas, and then teams in individual markets collaborate the same way. Keeping the lines of communication open encourages continual improvement, and the team structure sets clear expectations for accountability and keeps everyone dedicated to the same goals and values.

Those values, which put our duty of care to our residents and employees at the centre of everything we do, means the entire team is dedicated to a shared goal. And beyond those teams, the entire company works to support them. “We have great relationships with every functional group in the company,” says David. “There’s not a single person here who doesn’t recognize the importance of our residents.”

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

Many Canadians are renting for longer than they have in the past, due to factors including, rising housing costs, stagnant wages and freedom associated with renting. At Avenue Living, we invest in workforce housing, an asset class which caters to a particular subset of the population – those who are overqualified for affordable housing but may not yet be able to afford to purchase average market-rate homes. Among Canadians, 28 per cent live in some form of rental housing and a large percentage of those are Millennials.

Millennials have been at the centre of media attention for many years, and as they transition from post-grads to making up the bulk of the workforce, they are faced with a whole new set of challenges. Individuals born between 1981 and 1996 were labelled “Millennials” because they would join society as adults around the turn of the millennium. They now represent the largest generation in the country, accounting for 27 per cent of the population according to Statistics Canada.

Millennials are also the most educated generation, as the current job market demands higher training, but also offers the opportunity for the highest returns. However, what comes hand-in-hand with increased education? Debt. With rising tuition, higher costs of living and stagnant incomes, Canadian Millennials are racking up debt like no generation before them. According to KPMG, the average debt-to-disposable income ratio in Canada was almost 87 per cent in 1990, and more than 175 per cent at the end of 2018 — a trend raising the Bank of Canada’s alarms about the country’s economic vulnerability. Add in looming student loans plus a newly mortgaged home, and many Millennials find themselves living paycheque to paycheque.

So why do Millennials rack up such high personal debt without knowing when (or if) they will be able to pay it off?

The answer is simple: the American Dream.

David Macdonald, senior economist at the Canadian Centre for Policy Alternatives (CCPA) explains that this unfortunate financial situation is mostly due to timing. Millennials are, “the cohort that graduated with record debt levels due to climbing tuition fees and are faced with a real estate market that requires dramatically more debt than it did even a decade ago.” People who bought property before the late 1990s are the ones who benefited from the large jump in home prices, his research shows.

Due to their success in the market, parents of Millennials, most often the Baby Boomer generation, see homeownership as the ultimate road to financial gain — it worked for them, so it will work for their children too. This ‘dream’ has led many Millennials to sign up for mortgages they can’t afford, adding to their ever-increasing personal debt from student loans, credit cards, the list goes on. KPMG reported that the debt-to-income ratio for young Millennials is as high as 216 per cent, while it was 125 per cent for Generation Xers at the same age (between 23 and 38), and 80 per cent for Baby Boomers.

From societal pressure, guilt from family members and envy that Millennials feel for other homeowners, they continue to accumulate debt in the hopes of achieving this lifelong goal, even if they’re sacrificing future retirement savings in exchange for owning a home. KPMG reports that 72 per cent of Canadian Millennials say that owning a home is a goal, but 46 per cent say that doing so in the near future is a pipe dream. On average, Millennials are taking 13 years to save for their 20 per cent down payment, while it took their parents only five years in 1976, according to Generation Squeeze.

This trend has been exacerbated by the COVID-19 pandemic, with real estate prices in many Canadian cities climbing to all-time highs. According to a recent poll from Royal Bank of Canada, 62 per cent of respondents saying they expect the majority of people will be priced out of the market over the next decade, with 36 per cent stating they have given up on ever buying a home.

This financial landscape leaves us with two conclusions for Millennials’ future living situations:

Millennials are renting for much longer than their parents’ generation in order to save up before buying their first home, therefore elongating their renting years.

Some Millennials will choose to rent long-term and never buy a home, building their wealth through investments, stocks, and other avenues in order to avoid homeowner costs, like a mortgage, accrued interest, property tax, repairs, etc.

Whether Millennials choose to rent long-term or eventually buy a house of their own, this trend of renting for longer means a tightening of the rental market and the potential for higher occupancy for real estate owners and investors. Millennials need comfortable, stable, affordable rental properties now — and in the future — that they can call home in this narrowing market. If this generation is renting for upwards of 13 years before buying their first home (if ever), the need for ‘home-like’ rentals will rise. However, the biggest obstacle to overcome will be the ‘American Dream’ mindset of owning a home to feel successful.

Buying isn’t always the right decision, despite what the older generation might say. Depending on their desired lifestyle, finances, future goals and dream living space, renting long-term can be a better option. Bridget Casey compares the cost of buying and renting the same Calgary home over the long-term, only to find that the cost would be about equal once you take into consideration repairs, property tax and interest accrued when buying, in opposition to investment opportunities for those with more capital when renting. Therefore, this age-old belief that buying property is always a safe option is no longer true. Renting can be a long-term solution to living a happy, prosperous, financially stable life.

With this generation extending the rental period and considering long-term rentals as a financial plan, this opens up the opportunity for multi-family owners and operators to step in and offer solutions. We understand the importance of quality construction, neighbourhood diversity and ever-changing societal trends, responding to what people need and when in real-time. Avenue Living’s focus continues to be on providing comfortable, affordable workforce housing.

We will continue to invest in safe, accessible properties with individuals, couples, and families in mind so that we can provide affordable solutions for those looking to rent long-term, giving them the value they desire without the responsibility of homeownership.

We’ve seen the trend of renting long-term grow over the years, and we’re working to stay ahead of the curve by accommodating the diverse needs of renters with all kinds of lifestyles, family situations, and ambitions.

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them

Building Relationships and Communities Through the Avenue Living Resident Experience

“Everything we do from an operations standpoint, we do to make sure our residents feel safe and comfortable in their homes,” says Kelly Mahajan, Vice President of Operations for Avenue Living Communities.

We often talk about how Duty of Care is one of the fundamental pillars of our business. Avenue Living has been built on providing quality homes for people across western Canada, and we’re keenly aware of what a significant responsibility that is. Our duty to our residents covers the physical environment we provide as well as all the services we offer to support them, from finding the suite that matches their needs to ensuring our response to any concern is timely and efficient.

Looking at the Big Picture

The resident experience is about so much more than what an individual suite is like. It encompasses our operations, our service, and the community we foster within each property.

“Really, it’s about understanding all of our touchpoints, and knowing what that experience is like for our residents,” says Kelly. “It’s about creating that welcoming community, that comfortable place to live with neighbours they know and staff they’re familiar with.”

Creating that experience encompasses everything from how we present a professional image through signage, staff uniforms, and communications to our approach to service and maintenance.

“We really want a consistent level of excellence in everything we do,” says Kelly. That includes how we handle resident concerns. “It’s about taking appropriate and timely action, and really empathizing with the resident. We really work to understand what the resident is dealing with, communicating clearly with the resident about their experience, and following through with an effective plan of action.”

Part of creating that experience means being proactive. We have a rigorous quality assurance program that involves regular assessments of all our properties to make sure everything is in working order. “

We also have a pledge to address any resident concerns within 72 hours. We manage to consistently beat this, with an actual average of 47.5 hours, thanks to our dedicated team of maintenance staff who execute maintenance requests to ensure our residents are comfortable and secure. And while not every request can be resolved that quickly (for example, the job may require parts delivery that takes longer than three days), we’re committed to ensuring we’re openly communicating with residents and addressing their concerns throughout the experience. We also follow up with them post-job, to make sure they’re satisfied with the work.

The Call Centre is available to residents around the clock, every day of the year, via phone, email and chat. But we’re working on ways to simplify things even further for them. “In the future, we’d really like to give residents more options for how they engage with information from us,” says Kelly. That may include tools such as a resident portal, which will provide a central place to access news and updates, as well as to contact Avenue Living with their concerns. “We want to simplify things from the resident’s perspective.”

Our residents are a diverse group, each with their own needs and preferences. As a result, we use a diverse set of communication tools to make sure we reach everyone. That includes print material, e-mail, and even text messages. We know that how we communicate with residents — right from the mode to the words and images we use — sets the tone for our relationship. So we take care to get it right.

Capex for Comfort

We make our decisions about capital expenditures carefully and strategically. Obviously as investors we want to add the most value to our assets and ensure they last as long as possible. But a key component of adding value is ensuring our residents feel safe, comfortable, and at home in our properties.

Our capital expenditures often focus on things that make a building more comfortable or safer for residents — for example, re-roofing, replacing flooring, or installing new boilers. These improvements mean the temperatures of their homes are more comfortable, and the durable finishes are cleaner and brighter. But we invest in other spaces, too. In Edmonton’s Delton Townhomes, for example, we’re making improvements to the outdoor space to give families a space to gather and play. In King’s Alley in Calgary, we’re renovating the community room to give residents a welcoming place to safely gather.

Continuous Improvement

We know that no matter how high our standards are, and how often we meet them, there’s always an opportunity to do better. We’re actively working on ways to improve our resident experience with short-term programs, like our new Resident Inquiry Program, which helps ensure Regional Portfolio Managers are aware of any inquiries that may come in outside of their working hours. But no matter how our residents communicate with us, or we with them, our priority is the same: making sure that when they live in one of our properties, they’re living in a place they can call home.

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 This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

“Duty of Care is one of the pillars of our company,” says Aman Bhalla, Senior Vice President of Investment Management for Avenue Living. “Investing in multi-family residential means investing in homes, and it’s vital that we ensure those homes are safe, comfortable, and affordable.”

Avenue Living owns and operates approximately 500 class B and C multi-family properties in western Canada and the United States. We’ve focused on “investing in the everyday,” purchasing and revitalizing vintage buildings and providing affordable homes for many in the essential services. Our properties are home to more than 25,000 residents across the Prairies, who, on average, call our properties home for an excess of three years. 

As stewards of capital, we make sure we look after those investments. We have a duty to our investors, our residents, and our employees to ensure our properties and customer service consistently meet a high standard. That’s why, in 2019, we implemented a rigorous program to ensure we continue to meet our standards.  We’ve developed and implemented detailed quality assurance assessments that help us monitor the qualitative and quantitative elements of our business including building quality, maintenance requests, resident feedback, employee engagement and safety. The program gives us an accurate picture of current performance and helps us layout plans for continuous improvement. On top of that, it’s working.

Since the program’s launch we’ve seen an average improvement of three per cent every quarter. “Today, we have a 91 per cent success rate across the board. We’re really encouraged by the achievements from our operations team,” says Aman

A Dedicated Team

In each region, we have a robust team of maintenance, leasing, and operations specialists who are dedicated to making sure our residents’ homes are safe and comfortable, and the service they receive is of high quality. Our property management team has a maintenance budget and capital expenditure plan dedicated to maintaining and improving our assets.

The quality assurance program includes a detailed set of assessments which ensure quality assurance team assess properties in each portfolio according to the same criteria in order to adopt a standardized approach. Assessments look at every aspect of our operations, including:

Customer Service: We examine key performance indicators, how leasing agents are helping prospective residents find the home that meets their needs, and how regional teams are dealing with resident concerns. Measures include work order turn-around time, leasing conversion rates as well as interviews with residents.

Property: Our QA team conduct detailed assessments that capture the condition of our buildings down to the tiniest details. They examine common areas, exteriors, and vacant suites to ensure they’re in good condition. Their reports include photographs and clear notes for building maintenance teams.

Post-Assessment Meetings: Once an assessment is complete, we connect with the property managers to go over the findings. We talk about where we’re doing well and where we can improve and develop a plan to address any challenges that were discovered during the assessment. A continuous improvement mindset is essential to the success of the program, and our regional operations teams are empowered and supported to make improvements.

“This quality assurance program also demonstrates to our investors that we are dedicated to creating sustainability for our investments,” says Aman.

From a business perspective, investing in operations this way helps us retain residents, which in turn helps generate stable rental income. But this approach is also part of our triple-bottom-line philosophy: in taking care of our investments through regular maintenance and capital expenditures, we provide residents with a safe, comfortable place to live, and the surrounding community benefits, too. Residents who remain in place longer are more likely to be connected with the surrounding community, and the community benefits from affordable, well-maintained housing options — which benefits all of us.

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This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.