Golden Opportunities

At Berkshire, property managers get authority and respect.

From the very beginning, Berkshire leadership has sought the on-site insight of its property managers. “Whenever [founder] George [Krupp] came into town, he wanted to hear from the manager. He'd look at leases alone, but he paid an interest in the on-site manager,” says regional manager Cathy Robinson, a one-time Berkshire property manager who has now logged 15 years with the firm. “He wanted to know what was happening at the property.”

That attitude continues today at Berkshire, where property and district managers are considered an integral part of the business, from acquisitions to operations. “We're trying to push the value-chain concept as deep into the organization as we can,” explains division vice president Dean Holmes. “We're trying to create a sense of ownership in the asset.”

So on-site staff participate in due diligence on potential deals. They set their own rents, without the assistance of revenue management software. They renovate test units to see if the changes could drive rents. “This company is not shy about giving you $100,000 to test” potential rent boosters, says Zach Maggart, Berkshire's vice president of redevelopment.

Such autonomy gives Berkshire property managers, whose tenure is typically between eight and nine years, a decision-making confidence often lacking in property managers at other apartment firms. At property after property, Berkshire managers greet company leaders by name, taking advantage of the visit to propose upgrades—six-panel doors, for example—that they believe will improve the property's NOI. They know they are responsible for the value of their properties, and they welcome the challenge.

LOCAL AUTHORITY: Berkshire encourages its property managers to make decisions that improve their property's asset value. Shown here: Logan's Mill in Austin, Texas.

“We've created an acquisition model that allows everyone to speak the same language,” Holmes says. “We have demystified acquisitions and allowed them to see how their operational decisions affect the value of the asset.”