Due to the ongoing pandemic, many landlords are faced with an increasing number of distressed properties. While managing distressed properties can be among the greatest challenges that real estate managers will encounter, Trion recommends a hands-on approach to minimize collections, violations and fines. Trion President, Carmelo Milio gives credit for Trion’s current success to the coordinated approach from his team which applies the following strategies during this challenging time.

Trion’s Five Action Steps for Turning Around Distressed Properties:

1. Communicate clearly and frequently with tenants.
   Trion takes a proactive approach for buildings suffering from delinquent collections. In addition to collecting rent, Trion acts a direct resource for tenants, pointing them to the appropriate non-profit and government agencies to get them help during these tough times. Communicating frequently with available support services information helps tenants understand what is going on, get help, and believe management is receptive to their issues, which reduces stress all the way around.
2. Minimize operating and maintenance costs.
   All buildings in the Trion Portfolio benefit from a network of superintendents and managers who have many years of experience in keeping costs down. Properties benefit from bulk-purchasing and vendor discounts on supplies, oil, and insurance.
3. Use the latest management technology.
   Technology increases automation and efficiency and has the ability to quickly generate reports for owners with updates of outstanding projects and action list items. Transparent records help staff coordinate, stay organized and ahead of issues, and shortens response time which contributes to tenant retention.
4. Reduce financial exposure by addressing all code violations immediately.
   Violations are often filed for simple problems that can be fixed quickly. For example, between September and December of 2019, a 60,000 square-foot, five story walk-up apartment building with 57 apartments and 10 stores in Manhattan had accumulated 100 NYC Department of Housing Preservation and Development Violations (HPD). HPD enrolled the building in the Alternative Enforcement Program (AEP) on February 1, 2020. The Trion management team jumped into action and by March, HPD removed 47 violations on first inspection and 23 violations on the second inspection. By the third inspection, HPD eliminated eight more, successfully removing the building from the AEP program. The building is now stabilized and fits well in Trion’s portfolio requirement of less than one violation per unit.
5. Develop a detailed marketing program.
   Each property under Trion management has its own marketing program to not only rent units faster but retain existing tenants. Trion also has an in-house leasing team that pays close attention to tenant retention and is extremely aggressive in getting units rented quickly.

While the market will remain challenging for some time, there are ways to immediately reduce some of the stressors that landlords and property owners are facing. The key is to have a strategic and comprehensive plan created and implemented as quickly as possible. The sooner property owners act, the better the odds of a fast recovery.