Success Story: Vancouver Property Management Firm Increases NOI by 30% in One Year
“Property management firm 3PM Real Estate Services Inc has achieved a 30% increase in rental revenue for its client’s Class C-D property at 8365 French Street in Vancouver, thanks to a successful upgrade to a Class B property. The firm increased monthly rental revenue from $0 to $7,453.41 in the first year of management, and by the end of 2021, the property’s rental revenue had reached $104,105.00 for the year. This impressive upgrade demonstrates the expertise of 3PM Real Estate Services Inc in property management and their commitment to providing outstanding service to clients.”
“In addition to the impressive increase in rental revenue, upgrading the property from Class C-D to Class B has resulted in a significant improvement in the property’s financial performance. The net operating income (NOI) has increased from $34,924.18 in 2020 to $59,767.45 in 2021, leading to a positive impact on cash flow before taxes, which improved from a negative cash flow of -$104,207.44 in 2020 to -$79,364.17 in 2021. The cash-on-cash return (COCCR) also improved from -36.6% in 2020 to -28.7% in 2021, indicating better performance and generating more cash flow relative to the amount of capital invested.”
Here’s a side by side comparison of the NOI and cash-on-cash return for the property at 8365 French Street in Vancouver, before and after the upgrade from Class C-D to Class B:
| 2020 (Class C-D) | 2021 (Class B) | |
| Gross Rental Revenue | $72,557.41 | $104,105.00 |
| Vacancy & Credit Loss (5%) | -$3,627.87 | -$5,205.25 |
| Effective Rental Revenue | $68,929.54 | $98,899.75 |
| Operating Expenses | -$34,005.36 | -$39,132.30 |
| Net Operating Income (NOI) | $34,924.18 | $59,767.45 |
The upgrade from Class C-D to Class B has proven to be a smart investment decision, resulting in a significant increase in rental revenue and a better financial performance for the property. 3PM Real Estate Services Inc has demonstrated their ability to create value for their clients and achieve success in the Vancouver real estate market. If you need help managing your portfolio, contact 3PM Real Estate Services Inc today to achieve your real estate goals.
