WHERE AND WHY THE NEXUS PROPERTY MANAGEMENT® FRANCHISE MODEL WORKS SO WELL
The key to a successful business is offering value that others want and are willing to pay for. At its roots, it’s that simple. Research shows that more than any other variable, the half of all small businesses that don’t survive more than five years struggle because there is not enough demand in the market for what they’re offering. When you think about real estate, it’s currently an especially attractive area because of the well-publicized inflated prices and sales opportunities that struggle to keep up with demand. Real estate sales have been booming, but it won’t be that way forever, and plenty of people who got in the game to chase the riches will fall right out again when the cyclical market moves along. So how do you find value that others want regardless of market trends?
Nexus Property Management® has the answer and franchise opportunities for anyone who wants to join a winning team. It’s not enough to just be in the real estate field, or any field for that matter, you need to specialize. Nexus’ beginnings in Pawtucket, Rhode Island, the birthplace of the American Industrial Revolution, have provided the seeds for maximum success and value in any and all similar mill cities or other places with rich industrial pasts.
WHAT IS THE NEXUS MODEL?
The Nexus model is predicated on the idea of creating win-win-win relationships by investing in and managing multi-family homes. Our goal is to support property owners in adding value to the lives of tenants throughout the areas we service. Happy tenants feel valued and create long term tenancy, with limited hassles and conflicts for those property owners. Happy property owners continue to trust our work and recommendations, which continues to help tenants and helps us grow our business. The key to this flywheel is operating in an area with high residential density with room for asset improvement that is not overly extreme/overly expensive. The sweet spot for these conditions are communities that were once mill villages. Up and down the rivers and coasts of New England, you’ll find residential infrastructure built around once mighty mills, factories, and seaports. Although the manufacturing jobs have long since vanished, the old three story tenements still exist and there’s plenty of room for improvement.
[LEARN MORE: HOW BEST TO INVEST IN SINGLE-FAMILY HOMES]
WHERE DOES THE MODEL WORK BEST?
The Nexus model will work anywhere there are multi-family homes, but it works best in former industrial cities. In 1790, Moses Brown financed the first water powered textile mill in America along the western bank of the Blackstone River. In downtown Pawtucket, Rhode Island, the first factories came to life and with it came the need for labor. The photos below show the evolution of Slater Mill, but most importantly you’ll see the housing that commonly sprung up due to high demand for local workers (bottom left).
For this reason, our first Nexus Property Management® office was housed in Pawtucket, rather than the far more populous Providence, just 4 miles away. Pawtucket has a population of roughly 72,000 with over 32,000 housing units, 57% of which are rental units. This trend is the norm in these old industrial hubs. With 18,000 rental units nearby, it took less than a year to have 100 units under management; 3 years to hit the 500 mark, and 7 years to manage 700 units within a 30 minute range. This trend, of quick and reliable growth, is also the trend for Nexus branches in similar locations.
The second Nexus office opened in Fall River, Massachusetts, another once mighty industrial site. With 94,000 people in the city, and another 95,000 just down the road in New Bedford, the former whaling capital of the world, the Fall River office also sits in a tenement hotbed. And similarly, in just 6 months they had 100 units under management and hit the 300 unit plateau in just a year and a half. The third Nexus office opened in central Massachusetts in Worcester. Same story: Dense population of over 200,000 living in close knit homes built for factory workers and within a year of Nexus operating, 100 units under management.
Fall River, Massachusetts: Multi-family homes are the norm because factory labor was in such high demand during the Industrial Revolution
[ LEARN MORE: TOP 3 MISTAKES INVESTORS MAKE WHEN BUYING A RENTAL PROPERTY ]
WHERE NEXT: CONNECTICUT
Initial success has occurred up and down the Blackstone and Taunton Rivers but there are plenty more rivers in the area that fed industrial cities. The Thames River feeds New London (population 27,000 with 8,000 rental units) and Norwich, Connecticut while Middletown, Hartford (population 123,000 with 40,000 rental units), and Springfield, Mass. share the Connecticut River. As we move west we see the same infrastructural trends along the Long Island Sound:
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New Haven is home to 130,000 people and 40,000 rental units
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Bridgeport has a population of 146,000 with 34,000 rental units
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Stamford houses 129,000 and 23,000 rental units
While the Nexus model of targeting and adding value to multi-family buildings can be applied with success across the country, the model is tried and true and evolved with areas like these coastal cities in Connecticut in mind. Not only are there so many cities that mirror the demographics of Pawtucket, Fall River, and Worcester, but so many population centers are adjacent and easy to access via I-95.
NEXT STEPS
NEXUS PROPERTY MANAGEMENT® FRANCHISE OPPORTUNITIES ARE AVAILABLE and there are certain areas in Southern New England that would be a perfect fit for our property management model. Just as Fall River and Worcester franchisees found quick and lasting success, we’re excited to bring another team member on board to expand our win-win-win relationships into new regions. Contact our team today for more information.
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Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.
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