Client Profile

Private Multifamily Owner

Property Type

132-unit Class C apartment community, built in the 1970s

Engagement Objective

Restore lost income by identifying, prioritizing, and returning long-vacant and unreported out-of-service units to rentable status while establishing disciplined oversight to prevent recurrence.

The Challenge

When Altus Residential leadership was first engaged, the property appeared to be operating near stabilization. Occupancy reports suggested manageable vacancy, and ownership believed performance issues were primarily market-driven.

A deeper review revealed a more serious problem: six units were completely unrentable and had been offline for over a year without appropriate tracking or escalation. Because these units were not accurately reported as “down,” leadership lacked clear visibility into the true scope of lost revenue.

The conditions varied but shared the common theme of deferred decisions and operational breakdowns.

One unit had suffered severe fire damage more than two years earlier and remained vacant. The presence of asbestos complicated demolition and renovation, increasing perceived cost and uncertainty.

Four units, all in the same building, were impacted by slow leaks in the hydronic heating system. Over time, a slow leak from hot water lines in the ceiling had caused extensive damage to drywall ceilings and walls, rendering the four units uninhabitable. These units had been vacant for approximately one year as the company struggled to determine a path forward.

A sixth apartment had the interior demolished down to the studs following a plumbing repair failed. An employee had incorrectly reconnected hydronic plumbing lines without properly tightening fittings, resulting in flooding and extensive interior damage.

Individually, each unit represented a maintenance problem. Collectively, they reflected a systemic failure in reporting, prioritization, planning, and execution.

The Strategy

Altus Residential leadership approached the engagement with a focus on visibility, accountability, and decisive execution.

1. Establishing Transparency and Control

The first step was ensuring every unrentable unit was properly identified, documented, and designated as a “Down Unit” within the property management system. This created immediate visibility on the problems and ensured the lost revenue was clearly quantified and monitored.

2. Prioritization and Scope Definition

Each unit was evaluated individually to determine scope, sequencing, and cost-to-recovery. Rather than treating the issue as a single large capital project, work was broken into actionable phases with defined timelines.

3. Mobilizing Skilled Resources

A mix of in-house specialists and skilled contractors were brought in to address the specialized requirements of the property, including hydronic heating systems and regulated asbestos remediation. Work was coordinated to maximize efficiency..

4. Technical Execution

New heating lines were run for the four units impacted by hydronic line leaks, damaged drywall and ceilings were repaired, and systems were tested to ensure long-term reliability. The fire-damaged unit was addressed with appropriate remediation planning, and the flooded unit was rebuilt.

5. Accelerated Timeline

Despite the complexity of the work, the most severely impacted units were returned to rent-ready condition without delay, restoring income far sooner than the company had expected. Property expenses were prioritized and existing cash flow was able to pay for the renovations.

The Results

Six Previously Unrentable Units Returned to Service

• Units that had been offline for up to two years were stabilized and prepared for leasing.

Material Increase in Effective Occupancy

• Restoring these units immediately increased revenue without relying on rent growth or market improvement.

Improved Visibility

• Accurate classification and reporting ensured company leadership had clear, real-time insight into unit status and performance.

Operational Risk Reduced

• Correcting prior workmanship errors and addressing systemic issues reduced the likelihood of repeat failures, and improved property perception with the lender and insurance provider.

Foundation for Sustainable Performance

• The property transitioned from ignoring problem units to proactively addressing operational challenges with confidence and increasing revenue..

The Takeaway

This engagement illustrates a fundamental truth in multifamily operations: performance issues are often operational, not market-driven. Significant value can be lost quietly when properties do do not have experienced, professional oversight. 

Altus Residential brings immediate structure to the most challenging situations, restoring income and confidence through disciplined Asset and Property Management. We don’t accept long-vacant units as inevitable, we treat them as problems to be corrected.

How This Applies to Your Portfolio

If your property is performing at market, or below, Altus Residential can identify the improvement opportunities and resulting financial impact. You decide how you want to proceed and Altus Residential provides the experience and execution capability to bring your property to above-market performance.

We don’t just improve performance, we drive it.