Houston is a vibrant city that offers impressive high-end housing options, including multifamily properties. Given the large amount of development that can take place in Houston, luxury multifamily properties must maintain high standards, which often include high-tech amenities to compete effectively. This presents particular management challenges in comparison to Class B and C properties. Most investors use a management company to ensure smooth functioning; however, companies that offer integrated investment and management services provide additional advantages to investors.
The High Standards of Luxury in Houston Apartments
Houston, home to 25 Fortune 500 companies, numerous energy companies, and an emerging tech industry, has a sizable luxury housing market. To satisfy discerning residents, developers have raised the level of opulence considerably over the years.
Luxury features in individual units can include central air conditioning, high ceilings, custom finishes, and custom cabinetry. Smart home technology—remote, cloud-based control of lights, heating, and security, for example—is a requirement for some renters. Other luxury amenities, such as ample space allotted to business centers, clubhouses, and conference rooms, create an impressive, upscale ambiance. Wine tasting facilities and screening rooms for sports events or private films can also be found in some luxury Houston apartment communities.
Upscale renters are looking for apartments with great views in prestigious neighborhoods. A gated entrance, expansive and well-tended grounds, and a large pool (especially if it is located on the roof) all offer proof of exclusivity. Moreover, amenities such as a yoga studio, bicycle storage or sharing facilities, and electric-vehicle charging stations reflect the most current trends in luxury.
Services, too, count for much and provide the management company with an opportunity to distinguish itself. Valet parking, concierge services, and impeccable maintenance create the desired impression. A management company’s services are judged by both the residents and the owners of the property, so flexibility and resourcefulness are key.
While residents expect the management company to support their lifestyle, owners have an entirely different, and no simpler, set of demands. In addition to the physical aspects of maintenance (plumbing, landscaping, and housekeeping in common areas, for example), owners may require resident-related services, such as interviewing and screening prospective renters, and handling lease details. The management company might be asked to direct the community’s marketing, branding and market positioning, social media efforts, and reputation management. Owners may also need financial services, such as making insurance, utility and tax payments, collecting and depositing rents, and producing financial reports on a regular basis.
Investing in Luxury Apartments and High-Quality Management
Investors look to Class A properties for wealth preservation, rather than wealth creation. While the high operating costs of luxury buildings constrict cash flow, Class A communities typically have a high resale value. Houston’s beleaguered multifamily real estate market is on the upswing, along with the city’s economy, making this an excellent time to invest in that city.
A management company controls a potentially large staff, and all of its tasks combined can be time-consuming and may require a set of decision-making abilities that an investor simply does not have. Sound, strategic decisions surrounding preventative or deferred maintenance, renovations and upgrades, and optimizing financial performance, for example, must be made to avoid wide-ranging consequences.
A trusted and integrated investment and management company seamlessly combines property management and asset management, ensuring top performance in both areas and saving an investor much time and many headaches.
CWS Capital Partners is a fully integrated multifamily real estate investment management firm that offers everything from due diligence and risk management to transaction support and property management. We also own and manage luxury multifamily investment communities in major markets across the country and employ a team of experts who can help you develop your investment strategy.
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