Nessel employs construction management staff, including a unit renovation specialist, common area renovation specialist, and purchasing/inventory associate. Corporate staff provide accounting support for loan draws and to help track progress vs. budget. Beyond this, Nessel has 'captive contractors' who almost exclusively work for us and provide pricing and flexibility not easily found by standard 3rd party contractors. In addition to expediting and reducing the cost of our renovation work, this capability greatly reduces our operating and replacement costs by nearly eliminating the need to call expensive plumbers, roofers and electricians for emergency repairs.
One of our primary missions is to contribute to a more ecologically sustainable human presence on the planet. Besides paying off karmically, this effort also pays off on the bottom line via vastly reduced energy and water costs. The process begins with renovation, which include the install of low-flow shower heads, faucets and toilets, compact fluorescent lightbulbs, computer controlled boiler systems, rain sensors for irrigation, xeriscape and native plants, attic insulation, caulking, energy star appliances, and low-e windows. Then, on an ongoing basis, we monitor and compare our properties on water/gas usage per occupied unit, and on electric usage per vacant apartment. It is common for Nessel to cut water usage more than 60% and electric/gas usage 25% or more.
As asset managers, we require that all contracts are approved through Nessel. As a result, we have saved our properties countless dollars through negotiating favorable rates for electricity, landscaping, telephone, utility rebilling, security, alarm, marketing guide books and rubbish removal. On the revenue side, we are able to obtain free goodies with cable companies such as internet and cable to our exercise rooms and clubhouse, and referral fees from electric companies. Additionally, we careful adjust contracts to prevent auto renewals, a costly error often missed by owners. And because we have a capable corporate staff, we are able to fill-in for the properties when they need help, rather than hire temp workers who are often less qualified and charge more. On the construction side, we make improvements that will on a continual basis lower operating costs. Examples include replacing carpet with hard-surface flooring and mini-blinds with faux wood blinds.
Nessel Development's strengths in Asset Management are derivative of the substantial self-management experience we acquired prior to partnering with a variety of the industry's strongest fee-management firms. While maintaining the flexibility to adapt to the specific platforms and expertise of our managing agents, we offer a hands-on approach to overseeing and supporting the physical assets (in addition to the substantial marketing support described above). With frequent site visits and inspections, a close partnership with the property accountants, and a focus on the core values from which many of our competitive advantages are derived, Nessel Development truly partners with the managing agent, developing strengths and strategies to complement those of the on-site teams. In addition, Nessel does not have a "one-size fits-all" approach; we carefully select our fee-manager for each asset based on the unique characteristics of the property, the target renter, and their performance in the specific sub-market in question. Some of the support we provide the property management company, as well as checks/balances are bi-monthly property walks, detailed review of monthly financials, review and approval of all contracts, oversight of property tax challenges, insurance purchasing and claims management, regular shopping of leasing agents via internet, and specialized move in gifts for residents.