Making Progress...

As a small start up management company in Kansas City, I have to say that I feel overwhelmingly blessed with the direction we have chosen to grow. Our vision has always been to "Manage Properties For A Greater Purpose" and that purpose started with Uganda. It's exciting to now also be working with a few local organizations and use our resources to potentially help the homeless of Kansas City and provide consulting and housing for families in the Urban Core.

Meridian is turning a corner with our 4th quarter goals...the need for responsible property management throughout the metro area has called us to find a more well-rounded team to provide safe and clean homes for the people of Kansas City. 

So here we go!!!

We identified that Kansas City has an enormous inventory of abandoned or foreclosed homes that just need some TLC, the problem was finding the right contractors that would provide an honest service for the work needed that would stay within the desirable ROI. 

After months of searching...we are excited to have Travis Thonen with Midwest Comfort Homes provide project management for those investors. MCH has done a tremendous job with our clients by providing them a clear detailed scope of work, progress pictures throughout the time line and a sense of trust that our clients investments are being taken care of, NOT taken advantage of...

We have also seen the need to combat the nuisance notices our investors are receiving daily. Due to tremendous rain fall this past spring and throughout the summer, lawn care has been a constant struggle. Meridian has contracted an individual who is specializing in yard clean up only for our metro homes. Tree trimming, landscaping, mowing and trash haul off is incredibly important not only to keep the city happy, but also to increase property values. We recommend our investors to allow our team to do a clean up in the spring and again in the fall so that the resident does not feel overwhelmed and can then maintain the mowing easily if it falls under their responsibility. Investors who take pride in their homes and show residents that they care enough to provide this service flows over to the resident who then understand our expectations to keep the home maintained. 

Growing our inventory and defining these new services while also maintaining our customer service level has been a welcoming struggle. We are blessed to have a group of clients that have been patient and understanding knowing that we are customizing our services to ultimately benefit them. The end goal has always been to provide a consistent level of communication to both investors and residents. In order to accomplish that task Meridian has added several in-house team members to handle the work load. We welcomed Cindy Wallace as the Director of Maintenance in late April as well as Jamie Allen our new Regional Property Manager in July. We've also contracted a new maintenance technician, Clayton Allen, with C & J Property Maintenance.  It is a blessing to be working with a group of individuals who supports Meridian's vision!! 

There will be more changes to come in the 4th quarter of 2015- including more consulting services for clients wishing to buy and sell their investments. We look forward to growing a business that is willing to address the needs of our clients! 

If you are an investor looking for a common sense approach to managing property...check out our services!!

 http://www.meridianpropertysolutions.com/management-services.html

Crystal Vaughn

Owner/Managing Broker

Meridian Realty & Property Management 

#ManagingPropertiesForAGreaterPurpose

#HugYourLandlord

For more information about the  and our involvement with Uganda Missions...

http://www.heartsandhope.org/blog/why-i-go-by-crystal-vaughn

Before & After Pictures for our Urban Core Properties....

Business As Mission Model

2014 was such an amazing year for our team! I would like to personally thank all the amazing investors and residents that allowed Meridian to exceed our goal of acquiring 100 properties in less than 4 quarters!

As we move in to the new year we have realized there is a true need for reliable contractors for the hundreds of rehabs in the Urban Core of Kansas City. Investors are choosing the Kansas City market for the incredible cap rates and availability of homes to purchase in bulk...the problem is the renovation of the homes for suitable living. Every contractor seems to have their own idea of what is acceptable "move in" conditions. An investor may buy a rehab property for 15K after being told another 10K would get the home to an acceptable condition for a renter to move in. The problem is that they are not the ones who are having to market the property nor are they the ones being called a few months down the road when there is major maintenance to be performed. It is amazingly frustrating as a property manager to be asked to market property that is not in acceptable condition. Market rates for rentals are at an all time high, even in the less than desirable neighborhoods. Putting logical and smart improvements to your property is going to benefit everyone...new windows, upgrading furnaces and roof repairs may be expensive up front costs, but down the road they are going to attract long term residents and minimize turn over costs. There are so many wonderful neighborhoods in the Kansas City area that just need a little TLC. Recently, we sent our amazing lawn care company to a home that was starting the rehab process. The home had not been touched in several year so it took several mows and a lot of trimming up to even get the yard in decent shape. The owner of the company called me that day and said by the time they were finished the neighbors were applauding them for finally cleaning up the home. This showed me that there is still residents that take pride in their homes...even if it is a rental...and that Kansas City has the ability to improve these neighborhoods, one yard and at time...one rehab at a time.

Meridian is looking to focus on the renovation process this year in hopes to find solutions for the lack of full service contracting specifically for the Urban Core. We hope to be able to provide a service that gives out of town investors confidence and security in their investments while also giving our management and leasing team a product that can be easily marketed. We want to be the solution to distressed communities such as the Urban Core,  by providing safe and clean homes for every resident. We want to work with non-profits, government agencies and churches to help people find reasonably priced homes in neighborhoods were residents care about their community. In order to accomplish this, we must match the right contractors with investors that understand the bigger picture of Kansas City's neighborhoods and work together to make a difference...to work our business as a mission....

For more information on our Business As Mission plan contact Crystal with Meridian Realty & Property Management!
816-463-3000
www.meridianpropertysolutions.com

Defining our Purpose!!

It's officially been 8 months since Meridian has really kicked off our mission to provide an honest & fair approach to the Property Management industry. Our success has been incredibly humbling...We have signed 36 new clients consisting of 80 properties...and while this seems impressive from a small business perspective, the most amazing part of this company has been the relationships. Residents & owners are utilizing Meridian, not just because of our knowledge of the industry, but because they understand that we want to do some bigger...something that really makes a difference. The mission for Meridian was to be able to utilize revenue's from management fees to assist with true missions...serving our communities, locally & around the world.

Choosing to manage properties in the Urban core of Kansas City is not exactly the easy route to generating revenue, but I will say it has been the most rewarding.  The handful of investors that are choosing to buy bulk properties in these neighborhoods are realizing quickly there is price to pay for large cap rates....and that cost is time. Crooked contractors, utility companies, city codes, and poor property management companies seem to be making these properties less and less desirable. The problem is not money...the problem is time. It takes time to develop relationships with the right contractors to ensure they are bidding rehabs fairly...it takes even more time to deal with the Kansas City utility companies. The most frustrating part of the process is the lack of quality property management companies. The inflated maintenance charges along with the lack of actually managing the property ultimately results in poorly screened tenants, evictions, costly make ready's, and vacancies...The solution? Relationships. I have identified a few basic ways to ensure the success of distressed properties in neighborhoods such as the Urban Core.

-Build an honest relationship with investors & contractors to ensure they are getting the best prices on  maintenance  & rehab costs.
-Be available to answer questions brainstorm and actively look for new ways to improve the  property,
-Work with non-for profit agencies/churches etc to locate tenants that will appreciate newly  renovated home at a reasonable rental rates and that are willing to support tenants in difficult  financial times,
-Know the neighbors. Shaking hands and speaking to neighbors has led Meridian to having a better  understanding to what the neighborhood needs and has helped find great tenants through  networking.
-Be an active presence-visit properties consistently and communicate with residents regularly

Our team is actively looking for ways to make these communities more desirable while increasing the value of the homes in the historical areas of Kansas City. I want Meridian to be the link between families needing a clean, safe home and the investors that own these homes, but need them properly managed. In order to accomplish this we are in search of agencies that assist families looking for a new home, AND for investors that are looking for a common sense management company to take care of their homes.

The end goal...a high cap rate for investors, tenants enjoying more affordable homes, fewer vacant properties in the Urban Core, and a property management company that is willing to use those management fees to give back to the community!!

Join our team as a resident, investor or agency and help turn distressed neighborhoods into safe, enjoyable communities!


Crystal Vaughn
Owner/Managing Broker
Meridian Realty & Property Management LLC

Out of town, Out of sight, out of mind...Why choosing the right property management company is worth the research!

Meridian Realty & Property Management LLC has been blessed to receive over 25 new clients in the past 5 months!! We are incredibly excited about the new relationships with our local and out of state clientele! Our team is also thankful to be given the opportunity to earn the trust and respect of so many owners/investors that have come to us in frustration over their past experiences with property management companies. It has truly been shocking to hear the horror stories of these clients who have been treated poorly and put in a desperate position of either selling or their last resort...finding a new management company.
The biggest mistake we are hearing about other property management colleagues in the Kansas City area was the lack of communication, mainly regarding maintenance. Obviously owners hire a management company to be relieved of the day to day operations that goes along with being a landlord...collecting rent, providing customer service to the residents, etc...but that responsibility has somehow developed in to taking advantage of owners who are at the mercy of a company they randomly chose from a Google search. Two new investors that I spoke with today were so frustrated that they were considering selling their investment. After looking over several of their financial statements to better understand their situation, we found the real problem was not a poor investment, but was the current management company falsely charging &/or over charging for maintenance!

While this seems to be more of an issue with out of town investors, our local owners have experienced this as well. As an investor myself, I understand the importance of honest communication in order to have a successful rental experience....My advice: Don't be a victim!! Do your research!

While maintenance expenses consistently is the hot topic, it was not the only issue. There are several simple things to look for in a new company, or to be asking your current company!! Based off my experience and the conversations with recent owners, here are a few things to think about when choosing the right property management company for your investment:

• Properly Licensed-Is the main decision maker of the company properly licensed? Several states require a real estate brokers license to legally operate a property management company. Be sure to check them out and ask for proof before signing contracts! 
• Management Fees on vacant units-While most companies do not charge fees for a new property that is vacant, be sure to ask about vacancy charges in the future. Eventually the resident will move out and you could be stuck with a monthly fee with zero cash flow to cover it! Don't be fooled with a fluffy explanation, management fees are for managing an occupied unit....vacant unit compensation should be covered with the leasing fee! If the owner is not receiving income then either should the property management company!! 
• Advertising Fees-are you charged for advertising even though qualified leads are generated through free sources? Ask for a report of where the qualified leads are coming from! Does the agent send you a copy of your ad? If not, ask for it!! 
• Leasing Fees-Are you paying a full leasing fee on a short term lease? You should only be paying a full leasing fee for a standard lease term which is usually 12 months or longer depending on your region. 
• Maintenance-Does the management company own a maintenance company or up-charge labor, appliances and general maintenance invoices? Larger companies may keep parts and materials on hand to be more efficient but be careful...those increases can slip into labor charges and added in to appliances that are not being stored. Be careful of delivery charges when an item was purchased where there is free delivery!!! 
• More Maintenance....does your company, or the company you are considering, understand the importance of trouble-shooting issues before sending a maintenance tech to the property? Thousands of dollars can be saved annually just by taking the time to ask our residents basic questions about their problem in order to send the right vendor out or to possibly fix the issue themselves! 
• Accounting/Financial Reports- What program does the company use? Do you have real-time access to your account? If you are choosing a new company, ask for a sample format of owner financial statements and ask them to explain them. You would be surprised at how many property managers do not understand a basic financial statement!

While some of these guidelines seem common sense, the concern is real. Whether you are a new owner/investor or experienced in the industry, hiring the right property management company is crucial to the bottom line of your investment. Take the time to do your homework! 

If you would like more information about common sense management, let's talk! 

letstalk@meridianrealty.net

Crystal Vaughn

Broker/Owner 

Meridian Realty & Property Management LLC

Landlord/Renters Insurance Policy...KNOW YOUR COVERAGES!!

In the past few years I have experienced several situations pertaining to insurance coverage, both for rental residents and landlords. As a landlord myself, I know how important it is to have the correct coverage for my investment property.... but what I'm seeing is that most investors have no idea what type of coverage they have or they don't understand what is covered until a disaster strikes.

One major question, as a landlord that you should be asking is the vacancy clause. Most landlord policy's state that if a unit sits vacant for more than a certain amount of days then several items are not covered. For example, an owner of a condo in Kansas City informed me that his unit sat vacant for over 60 days ...While vacant, the unit was broken in to and all the appliances, furnace and hot water heater was stolen. When reporting the situation to insurance, they refused the claim due to the fact the home had sat vacant for too long to be covered. Most insurance companies will ask for the most current lease on the home when reporting a claim.

Another mistake I have seen landlords make is choosing a high deductible or large blanket policy's for larger portfolios. Investors should estimate costs such as roof replacements, siding repairs etc before settling on a higher deductible.  You can bet that most weather related damages on  buildings will have to come completely out of pocket, when they could easily be covered by insurance for just a few dollars more. 

The most important thing to do when establishing a policy is to ask your agent how your coverage would handle every scenario possible and then have them show you the verbiage in your policy that backs up their answer...suggestions would be: 

    

    Water damage from flooding vs from resident neglect (pipes freezing, etc)...what is covered, what is not?

    A/C damage due to criminal activity (removing copper from units) Are you covered? 

    Vacancy period for full coverage...after that period, what is the coverage's? 

    Fire restoration-What is covered? Appliances covered? 

For my residents....Renters Insurance is a NO BRAINER!! Not only do most management companies require coverage  upon signing of the lease, there is no better return on your investment than having a renters policy. First of all, it's easy...most of your car insurance companies can add this policy to your current policy  for approximately $15-20 more per month . Stand alone policy's are also offered by all insurance companies. Keep in mind, that in the event there is major damage to your unit, whether it be weather related, fire or water damage, most policy's will cover hotel stays or temporary housing in addition to replacement of your personal belongings.  Again, as with the landlord policy's make sure you understand all the coverage's and make sure your deductible is going to be affordable for you if something does happen. 

Recently, a young couple left town over the holiday's and turned off their furnace to save on the electric bill. While away, the temperature went below freezing and the pipes burst. The owner was relieved to know that they did indeed have renters insurance, however, later they found out that the policy did not cover busted pipes due to negligence, so the young couple had to come out of pocket over $5000 to cover the repairs to the unit. 

For anyone living in the Midwest or owns investment property  in this region,  there is no doubt that spring/summer storms and tornadoes are upon us. Call your insurance agent today to make sure you are properly covered. Make sure your property management company is aware of your policy coverage's as well so they can report any damages in a timely manner to your insurance company. 

If you have questions about this topic, feel free to contact Meridian Realty & Property Management for more information and referrals for reputable insurance agents that specialize in investment property. 

Crystal Vaughn

Owner/Broker

Meridian Realty & Property Management LLC

#ManagingPropertyForAGreaterPurpose

Meridian Realty & Property Management

Welcome to my first blog post for Meridian Realty & Property Management. My name is Crystal Vaughn and I am the owner/broker for Meridian. This blog is primarily for investors and residents in the rental world, but I will also share other aspects of our team, such as mission work and life experiences that has contributed to the success of this company. I think it's important for all our clients, both investors and residents, to know why Meridian is unique compared to other property management companies....

My experience as a property manager has been extraordinarily diverse. I have managed high-end homes and duplexes in beautiful subdivision, as well as distressed town home communities and apartment complexes in less than desirable neighborhoods.  I've represented local owners as well as out-of-state and international clients....all with different needs and expectations. I have learned that as a management company's portfolio becomes more diverse, customer service takes on a whole new meaning. Property managers must be willing to go the extra mile to keep owners happy and residents taken care of. I am pleased to know that my small, but growing team of managers and colleagues understand this concept and are willing to take the time to make sure that decisions are made with both the investor and the resident in mind.

Meridian is special to me because I come from a long line of entrepreneurs....the spirit to run my own company comes down from several generations of relatives who all specialized in different trades. The freedom to make choices and be responsible for your actions comes natural for me. Most importantly, this company now gives me the ability to generate income that will  help others.  My mission with Meridian is to utilize my revenues to aid to less privileged countries, mainly through Hearts & Hope for Uganda, by building wells, educating educate children and changing the world..one kid at a time.

I plan on doing this by providing amazing service to my clients...services that are fair and make sense. Fees that are reasonable and expenses that are not inflated.  I hope that those who are looking for a management company will read these posts and see that Meridian is more than just a company looking to make a buck...we are truly managing for a greater purpose.

Crystal Vaughn
Owner/Broker
Meridian Realty & Property Management LLC