Strategic Rehabilitation Studies

Analyses typically take four weeks to complete. Jobs requiring faster turnaround may include a surcharge. Following is a synopsis of the components typically included within a Danter Company strategic rehabilitation study. 

Effective Market Area (EMA)

The EMA, the smallest area from which the project is expected to draw 60% to 70% of its support, is identified for the proposed site by mapping previous addresses of existing tenants. Mobility patterns affecting the subject site, natural and manmade boundaries that affect mobility, and area perceptions affecting the site are all identified. Management will be required to provide a list of current tenants by the zip code of their previous residence.

Area Profile

A social, demographic, and economic profile is conducted for the subject city, county, and Effective Market Area. Included are population, household, income, employment, and housing trends.

Tenant Profile

Applications are analyzed for demographic characteristics, and a tenant profile is determined.

Shopping Report

The subject community will be visited by a field analyst from The Danter Company posing as a prospective tenant. The following areas of community operations will be evaluated.

1. Community grounds appearance
2. Rental Office
3. Sales presentation and leasing agent
4. Model/vacant apartment
5. Telephone technique

Marketing Practices

Marketing practices of the community will be evaluated. The objective of this work element is to identify attraction and retention strategies.

100% Field Survey

All modern apartment development within the EMA is surveyed by our field analysts. The number of units surveyed is checked against census and local building permit data to ensure proper representation. The following information is identified for each community.

1. Number of units
2. Type of unit (garden/townhouse)
3. Unit mix
4. Rent
5. Vacancies
6. Unit amenities
7. Project amenities
8. Project type (market-rate or government subsidized)
9. Utilities
10. Comparability rating of the project
11. Year built/opened

The use of a 100% database allows us to use the following:

• Step-up support
• Exit and turnover vulnerability
• Gap pricing
• Regression analysis

Conclusions and Recommendations

• Strategies for rent adjustment to bring the community in-line with market pricing levels. Rent adjustments, if needed, may apply to specific unit types or the entire community.  In addition, changes in amenity packages may be suggested to make the community more competititive within the market.

Proposed rent adjustments are based on the following

• The unit and project amenities package is evaluated to determine its level of competitiveness with area developments
• A comparison of existing rent to market-driven rent based on a Comparable Rent Analysis. The Comparable Rent Analysis allows for determination of market-driven rent for projects of any amenity level by using a regression analysis to analyze project rent in conjunction with its Comparability Index.
• An analysis of step-up support for the  project. Our research indicates that the largest single component of support for any apartment project is apartment tenants already residing within the EMA, and that most apartment shoppers will "step up" their rent payments for housing that they consider to be a value. One of the key factors in declining performance is that an apartment community increases rents beyond the ability of its traditional step-up renters to afford.  Our analysis identifies this step-up support by dollar range and median.
• An analysis of turnover vulnerability for the  project. Our research indicates that the largest single source of tenant "drain" from any development is the apartment communities in the EMA priced within step-up range of the subject community.
• An analysis of rent gaps. Rent gaps are the differences in rent between unit types, such as one-bedroom and two-bedroom units. Rent gaps can be a substantial factor in a project's initial rent-up. Our analysis identifies the area's median rent gap, rent gap at the proposed project's Comparability Index, and rent gap at the proposed project. Rent gap among product alternatives (such as mix, location, and floor plan) at the subject site is also evaluated.
• Competitive Analysis. Competitive projects are compared with the proposed project and analyzed in detail, including a detailed look at floor plans, entry impact, storage space, unit and project amenities, and pricing.
• Marketing strategies for the proposed project may be discussed if appropriate.

For more information on strategic rehabilitation studies, please call us at (614) 221-9096 during business hours (8 am to 5 pm) Eastern US time.

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