Managing as an Asset.
Managing a Gibraltar investment means more than executing the usual property
management responsibilities-i.e. collecting the rents, paying the bills,
and performing the day-to-day tasks. Management that focuses solely
on income and expense accounting and day-to-day functions can become
overly cash-flow sensitive-to the extent of eliminating overview, and
neglecting long-term value.
We look at our investment properties as assets. Asset management requires
strict attention to all details of the investment that will affect ultimate
profitability. Hence, it requires control. Gibraltar’s principals maintain
control by staying involved. They give detailed, personal attention to
each property under management contract-whether it is a Gibraltar property,
or independently owned.
Overall, we believe management of each asset should be viewed as a
separate business. We feel that all decisions-being short term and long
term-should be made in a way that will magnify the asset’s value. This
approach is applied consistently on a day-to-day basis. For example,
we carefully control expenses. And yet we make whatever capital improvements
are necessary to generate rent increases, raise value, and meet our profit
projections.
Managing Day-to-Day Functions.
If successful property management requires “hands-on” involvement by
principals, then it demands excellent management personnel. Gibraltar
property managers understand our “asset management” philosophy. We also
train our people to recognize the difference between “mechanical” and
“people” problems. The former usually requires a capital outlay. The
latter can often be solved with minor changes in tenant use patterns. |
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Reports, On-Site Visits.
Gibraltar requires property managers to provide reports on rental
and lease income from each property, and summaries of all fixed
and variable expenses. These reports are scrutinized to identify
areas where improvements can be made. After verification, policy
changes are implemented to achieve these improvements.
Gibraltar’s principals make regular on-site visits to each property
under management to validate report data, deal with questions, supply
training and determine how well the short and long term goals of
the investment are being met.
Vendor Contracts.
Gibraltar re-evaluates and re-bids all vendor contracts on an ongoing
basis. Naturally cost is an important consideration when we award
a vendor service contract. But experience, reliability and honesty
are usually more meaningful.
Geographic Operations.
Gibraltar specializes in San Francisco Bay Area properties, however
our reach extends into Central California where we see opportunity
for investment and currently manage apartment communities.
Tenant Relations.
Gibraltar strives to achieve vacancy rates below those which commonly
affect competing properties in our market area. Our tenant relations
policy helps make that happen. As we improve properties and upgrade
rents over our term of ownership, we feel that it is extremely important
to communicate with tenant populations. They are informed of impending
rent increases, but they are also made aware of improvements to be
made and our need to make the property profitable for our investors. |