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AppFolio > Case Studies > KH Properties: Leveraging IoT for Enhanced Property Management and Revenue Generation

KH Properties: Leveraging IoT for Enhanced Property Management and Revenue Generation

Technology Category

Platform as a Service (PaaS) - Application Development Platforms
Sensors - Utility Meters

Applicable Industries

Buildings
Finance & Insurance

Applicable Functions

Facility Management
Procurement

Use Cases

Inventory Management
Leasing Finance Automation

Services

System Integration

The Challenge

KH Properties, a multifamily property management firm, was initially in search of a reliable accounting tool to consolidate their corporate and property accounting onto a single platform. The company, which started as a small single-family home renovation company, had pivoted into managing apartment complexes. They sought to reinvigorate underperforming or neglected communities through capital investment and improvement of assets. However, their operations were limited by the lack of a comprehensive management system that could streamline their processes and open up new opportunities for growth and sophistication. The challenge was to find a technology partner that could not only meet their accounting needs but also transform their business into a more professional and sophisticated operation.

About The Customer

KH Properties is a multifamily property management firm established in 2002. The company, which started as a small single-family home renovation company, pivoted into managing apartment complexes, with a portfolio of over 1,950 units. They focus on underperforming or neglected communities, investing capital to improve assets and make them desirable places to live. KH Properties is not just a management company; they also buy, operate, and renovate properties in-house, with a construction side to their business. They only manage what they own and typically hold their properties indefinitely. The company, which has 80 employees, operates in the Midwest and Southeast.

The Solution

KH Properties found their solution in AppFolio, a property management platform. Initially perceived as an integrated accounting system, AppFolio turned out to be a transformative tool for the company. It exposed KH Properties to new income categories, enabling them to collect water and sewer income, amenity fees, and application fees. The platform also introduced them to performance metrics such as vacancy loss and delinquency loss, which helped them reflect on their business and improve their budgeting. Furthermore, AppFolio introduced KH Properties to the concept of cross-property leasing, allowing one person to lease multiple properties remotely. This was particularly beneficial during the COVID-19 pandemic when in-person showings were not feasible. Additionally, the platform facilitated automatic reconciliation of rental income, as all payments were made online, eliminating the need for physical checks and manual reconciliation.

Operational Impact

The adoption of AppFolio transformed KH Properties into a more professional and sophisticated operation. The platform opened their eyes to new opportunities and revenue streams they had not previously considered. It also streamlined their operations, making them more efficient and effective. The introduction of cross-property leasing, for instance, allowed them to continue leasing properties during the COVID-19 pandemic when in-person showings were not possible. The automatic reconciliation of rental income also saved them time and resources. Furthermore, the support from AppFolio's dedicated team helped them get the most out of the platform, even prompting operational changes to optimize the software's performance. Overall, the partnership with AppFolio has not only improved KH Properties' business operations but also enhanced their mission to provide comfortable homes and top-notch customer service to their residents.

Quantitative Benefit

Introduction to new income categories, enabling the collection of water and sewer income, amenity fees, and application fees.
Exposure to performance metrics such as vacancy loss and delinquency loss, leading to improved budgeting and business reflection.
Implementation of cross-property leasing, allowing one person to lease multiple properties remotely.