Sky Properties, Inc.
Los Angeles, CA 90068
Savvy, Hands-On Property Management
Property management is a hands-on profession demanding extensive knowledge applied with precision and good judgement. Great managers prioritize both short-run and long-run tasks optimally and complete them expediently; they communicate superbly with vendors, tenants, property owners and coworkers; and they budget human and financial resources
Sky Properties manages more than 250 million dollars of Southern California real estate. Our portfolio ranges from well-tended buildings through those under our rehabilitation guidance, from high-rise luxury buildings and shopping plazas through smaller and lower-end residences and retail centers. Our ability to work with limited resources, to increase asset cash flow and total and net income while decreasing expenses — even within a depressed or oversaturated market — stems from true expertise.
Quality tenants seek clean, smoothly run buildings of appealing design. By exceeding expectations in these and related specifics of property management, Sky Properties management teams deliver profitability.
Sky Properties typically achieves full occupancy at above-market rents. Great on-site managers, superior tenant relations, and industryrenowned marketing have brought our clients investment success.
Sky Properties trains and supervises all staff, including on-site managers and support personnel. We diligently earned our reputation for service and excellence and accept nothing less than first-rate service from our personnel and vendors.
Profit Through Expertise
Sky Properties property managers must demonstrate hands-on mastery of property management. We encourage continuing education and certification in real estate sales and leasing; asbestos, lead and mold abatement; HUD and fair housing laws; marketing; accounting and other pertinent subjects. Our property managers additionally must demonstrate exceptional problemsolving and multi-tasking skills along with superb people skills. No matter how crazy the day, they must be readily available to clients, vendors, tenants and staff while optimally coordinating the efforts of each for the betterment of the property. A high standard, we know, but one that expresses our respect for clients and our desire to bring them success.
Checks + Balances
Sky Properties employs a multitiered system of checks and balances to improve efficiency and performance at each of our properties. Property managers, asset managers and auditing personnel regularly review hard numbers along with vendor and tenant feedback. Problems and solutions that a less review-oriented system might miss get exposed and addressed. The success of our efforts lies apparent in the improved, sustained profitability we deliver.
As part of our management duties, Sky Properties leases buildings from the ground up and as vacancies occur. Our targeted marketing campaigns, lease incentives and thorough background checks deliver quality, reputable tenants who add to the asset’s value through pride in tenancy and reliable, on-time payment of rent. That we leased 30 percent of one new construction within the initial 30 days and the complete building within six months with tenants who have proved reliable is not highly unusual for us.
For our commercial centers, Sky Properties pays particular attention to achieving a mix of tenants that will enhance the center’s overall draw and profitability while bringing it to full occupancy.
Our property managers frequently and thoroughly inspect each property and adjust maintenance schedules and budgets as needed to ensure that each property runs smoothly and that human and financial resources are applied optimally.
Preventive maintenance typically costs a fraction of emergency repairs. Preventive maintenance, too, earns tenants’ respect and their continuing occupancy. Few will argue these points. Determining the specifics of preventive maintenance — when, to what degree and by what vendors — is not always so obvious, however.
A quality property manager accurately determines when and where to direct resources to produce the greatest return given the time period for which the client envisions holding the investment. Recommendations and priorities for a relatively short-term investment typically differ, often dramatically, from those for a long-term one. A valuable manager understands these differences and budgets, then acts, accordingly. Constructive preventive maintenance goes far beyond fixing a leaky faucet or loose railing.
Our property managers supervise all repairs and maintenance, contract with quality vendors, and obtain client approval on any repairs or improvements estimated to exceed an agreed-upon dollar limit.
Attracting + Retaining Quality Tenants
Sky Properties excels at attracting and signing quality tenants. Our ever-evolving marketing plans have become classroom examples, our success at screening prospective tenants enviable, and our skill at deriving lease incentives and lease terms to sign the tenants we choose, well-polished.
We expediently process tenant applications and requests for information so that, from day one, we establish confidence in and respect for our managers. We stress friendly yet professional open communication with tenants and often go above and beyond their expectations. For instance, we help tenants locate suitable alternative arrangements, if needed, while we are renovating a property.
We collect rents promptly, enforcing late fees as applicable. Our screening efforts and positive tenant relations result in few delinquencies. On the rare occasions when problems arise, our resident lawyer assists as needed to deliver an efficacious resolution.
We regularly analyze each property’s leasing practices in light of the short-term and long-term goals and strategies we have mapped out for the property to ensure that lease policies, durations, late fees, rent rates, and other pertinent details suit not just a general bottom line but specifically the type of tenants we seek to attract and retain.
Sky Properties boasts vacancy rates of less than three percent on virtually every property we have managed for 24 months or longer — full-occupancy, often at above-market rents, at many of the properties. Our success at minimizing vacancies stems from several factors: savvy marketing that attracts suitable, quality tenants; skillful screening of applicants; lease incentives that particularly appeal to the tenants we seek to sign; lease clauses that discourage irresponsible tenancy; quick response to tenant inquiries and requests; and timely, useful maintenance.
Tenant surveys by industry publications and research groups consistently report lack of maintenance as the primary reason tenants move. A well-maintained property not only attracts tenants but also fosters pride in tenancy, which encourages long-term occupancy while discouraging tenants from inflicting excessive wear on the property. The combination helps minimize disruptions in cash flow, allowing financial and human resources to be spent as budgeted rather than inefficiently redirected.
People need accurate, timely information to make wise investment decisions. Our managers and staff prepare monthly, quarterly and annual financial reports for clients and make themselves readily available to discuss the data and related strategies. A typical set of reports includes a general ledger report along with statements of income, expenses and cash flow.
Our managers and staff use stateof-the-art Yardi® Voyager software; this and related applications allow us to precisely manage and report on operations. We can produce a myriad of custom reports at the client’s request.
Separate from the reports that Sky Properties assembles, clients can receive a monthly bank statement. Sky Properties establishes an individual bank account for each property. We never commingle client assets.
Budgeting + Variance Analysis
For applicable properties, we prepare and discuss with the client a comprehensive annual operating budget and an annual capital expenditures budget (a wish list, so to speak); each involves quarterly and monthly breakdowns. Too, when relevant, we also prepare unit renovation budgets as a subset of the main operating budget.
Monthly property maintenance (landscaping services, garbage collection, janitorial services, security services, etc.) as well as client-approved special projects (upgrades, etc.) are line items in the annual operating budget. At the close of each month, quarter and year, we compare actual operating expenses with projected amounts and prepare a variance analysis. Asset managers, property managers, accounting and support staff review any differentials along with the budgeted amounts to assure accurate, optimal allocation of resources, both human and financial.
We work only with licensed, bonded, insured, quality vendors. We use expertise, detailed research and our industry standing to negotiate favorable contracts, then treat our chosen vendors with respect that includes paying invoices promptly (via a multi-departmental chain of approval). Vendors like to work with us and typically respond to our calls first; they complete their tasks with the quality and timeliness they know we expect.
Commercial Property Management
Sky Properties manages more than 400,000 square feet of Southern California retailcommercial property, the collective value of which is more than $150 million as of the close of 2007. Our growing portfolio includes well-tended buildings, whose value we enhance and protect, as well as properties under our rehabilitation guidance.
On average, Sky Properties lowers expense outlays by nearly 30 percent within a year of assuming control of a commercial center. We concurrently improve upon the center’s overall appeal and long-run profitability. Our success lies in diligent analysis of each property’s strengths and weaknesses, in devising and regularly reviewing propertyspecific marketing and management strategies, and in lots (and lots) of hard work at both the micro and macro levels.
Sky Properties partners with the most sophisticated, experienced brokers to sign commercial tenants whose businesses complement one another in goods and services sold and/or clientele demographics. We look for businesses best suited to the center and its available space. Local, national, global — our brokers consider businesses of all spheres, as appropriate. We then launch multi-tiered print and electronic marketing campaigns targeted to the businesses we have identified as desirable.
Finally, we screen respondents and use lease incentives, if needed, to sign the ones likely to prove most beneficial to the center’s health and profitability. Throughout all these steps, we consider not only the viability and reputation of the individual tenant but also how that tenant will contribute to the viability and reputation of the center as a whole.
Residential Property Management
Our long-established residential division typically achieves rents that are at or above market while holding vacancy rates well below local and national averages. Our eviction rates are extremely low because our screening policies are so stringent. Our residential portfolio, as with our commercial, includes well-tended buildings and those under our rehabilitation guidance.
Sky Properties CEO, Kari Negri, is one of a select few Southland professionals to whom the Apartment Association of Greater Los Angeles (AAGLA) and Apartment Association California Southern Cities (AACSC) turn to educate industry professionals about marketing, property management, fair rental practices, and other issues critical to success in residential management. Her hands-on knowledge and industry connections have helped her serve clients and recruit skillful mangers and support personnel. She has built a division known for delivering results.
Affordable Housing Expertise
Sky Properties employs managers who have extensive HUD and tax credit processing knowledge. From verifying tenant income to administrating HUD contracts and monthly billing to handling HUD surplus cash distributions and related matters, Sky Properties managers stay apprised of relevant regulations and succinctly and appropriately record all transactions. Our managers, too, create a helpful, knowledgeable atmosphere that encourages tenants to stay on top of their filing obligations.
Awards + Distinctions Include
- 2009 Property Management Company of the Year for all Southern Cities
- 2009 Best Apartment Building in Van Nuys (Kestona Apartments)
- 2008 Property Manager of the Year for all Southern Cities (51-100 units)
- 2008 multiple Property Manager of the Year honorable mention for all Southern Cities (16-50 units)
- 2008 multiple Southern Cities Apartment Maintenance Supervisor of the Year honorable mention
- 2008 multiple Southern Cities Apartment Maintenance Technician
Masters of Property-Specific Marketing
Even an expertly maintained property will flounder financially if not housed with suitable, reliable tenants. Attracting those tenants rests in skillful marketing that best addresses the target audiences while favorably distinguishing the property from the competition.
Sky Properties is arguably the best in the industry at identifying and attracting the local as well as national audiences, as appropriate, that will help a property excel. Led by industry-renowned real property marketing expert, Kari Negri, Sky Properties delivers top performance per marketing dollar invested.
No two properties are exactly alike; neither are two Sky Properties marketing strategies. Each strategy reflects the property’s particular offerings — location, size, market standing, finish materials, transportation details, etc. — as well as the target audience(s) we identify as optimal to the property’s health and well-being.
Marketing strategies involve message, medium and methodology. We customize each to each property. Some properties receive more Internet marketing, others more focus in print media; some a localized focus, others national exposure; some content only in English, others a multilingual campaign.
A subset of our exceptional record for increasing (then sustaining) annual revenues at our buildings rests in our ability to bring in optimal tenants, which rests in our ability to identify, attract and sign such. At commercial centers, this task includes attracting not only suitable individual businesses but also a suitable mix of businesses that will help the center thrive as a whole.
Identifying target audiences — seniors for senior housing; arty young professionals for hip, in-town lofts; a fast-food drive-through plus a retail shop for each strip mall — easy, right?
Others may wish. The degree to which the architects of the marketing campaign correctly and succinctly identify the audience subsets who will best help the asset manager reach the outlined short-run and long-run goals is critical to arriving at a successful campaign. Sky Properties uses a multitude of research techniques as well as significant in-the-trenches experience to aptly identify optimal target audiences for each property.
Specialists in Property Rehabilitation, Conversion + Redevelopment
We transform properties from physical and/or financial disrepair to robust, long-lasting health. Rehabilitation projects, condominium and other conversion projects, redevelopment projects — they’re rather our specialty. Sky Properties evaluates current conditions, identifies areas for improvement in light of structural, budgetary and other constraints, determines and helps clients evaluate cost-return projections, then leads the project from an idea through budgeting, permitting, demolition, construction and ultimately to final occupancy.
Sky Properties can work within a wide spectrum of budgets and time frames. Our project management includes technical expertise and winning track records in both the residential and commercial arenas. Whether handling incremental renovations or a complete tear down, we shape properties into ones that deliver maximum, sustainable returns.
Asbestos, Mold + Lead Certified
Many Sky Properties property managers have extensive hands-on experience with remodeling older buildings — within budget — and are state-certified in asbestos, mold and lead removal. We have saved clients thousands of dollars, not to mention law suits.
Construction Supervision + Accounting
In all its asset and property management roles, Sky Properties stresses hands-on, on-site supervision along with concise record keeping. We abide by best-practices accounting protocol, never commingle clients’ assets, and make ourselves readily available to discuss with clients ongoing progress and project details.
We prepare a detailed, wellorganized budget and time line for ourselves and the client regarding each rehabilitation/conversion/redevelopment project, then report on progress and variance every month, quarter and year, as applicable.
Proven Contractors + Subcontractors
As with vendors we hire for property maintenance, Sky Properties screens construction contractors and subcontractors very carefully, only contracts with properly licensed, bonded and duly insured companies, and treats the companies and individual workers with respect so they deliver quality work and are motivated to work with us again.
Our extensive rehabilitation and redevelopment experience has provided our managers with a stable of quality design and construction personnel from which to choose.
Client Participation Welcome
Some clients want to take an active role in their investment ventures. Others prefer to have professionals take the reins. We work with clients at whatever level they favor. We insist that our property and project managers (our asset managers, too) possess the decision-making and communication skills to both go-italone and work hand-in-hand with the client.
“Sky Properties attends to the building’s and tenants’ problems in a professional, courteous + prompt manner. Our property image has been boosted. A job well done.”
-Sam Youngesi, General Partner, Harbor Co.
“Sky Properties turned a disaster into a very profitable enterprise. Under the company’s long-term care, rents and occupancy have doubled at my 79 unit apartment building, and the property looks beautiful.“
-Richard Slivkin, Real Estate Investor
“The Sky Properties management team has been responsible in a large part for the success we are now having with our rental operations. They have kept the building in good shape; it appeals favorably to renters. They keep excellent building records and provide all services in a timely manner. We are among the benefactors of their keen management skills and instincts.”
-Samuel Rand, Samual Rand Investments
“When Ms. Negri and her team at Sky Properties, Inc., took over management, I was ready to sell. (They) have done an exemplary job in all facets of management. Units are usually rented before departing tenants vacate, and rents are the best the market will bear. Maintenance is competent and consistent. Payments are prompt. In short, I highly recommend them.”
-Steve Werndorf, Property Owner