Real Investor Radio

Episode 43 | Kris Garin – Tenant Relationships, Portfolio Acquisitions, UPREIT Structure

April 29, 2024

Episode Summary:

Kris Garin from Riparian Capital Partners discusses their approach to managing tenant issues in post-industrial cities like Baltimore, Pittsburgh, and Detroit. They focus on building relationships with tenants and positioning themselves as the ideal counterparty. Riparian Capital Partners conduct detailed file audits and have a plan in place for screening tenants and managing turnover. They also prioritize clear communication and respect to avoid unnecessary conflicts. Kris also explains why they chose these cities for their portfolio acquisitions, citing the supply-constrained workforce demographic and the potential for resilience in the market. He also discusses the potential impact of changes in government programs on their portfolio. In this conversation, Kris Garin discusses the government’s role in providing resources outside of a paycheck, the impact of debt levels on the economy, and the importance of social impact efforts in the real estate industry. He also explains the 721 exchange structure and how it allows for tax deferral and diversification. Kris highlights the value of seller financing and the benefits of partnering with portfolio owners who are already considering a 1031 exchange. He concludes by emphasizing the need for alignment with investors and the potential for long-term growth in the workforce housing sector.

Overview of Episode 43

In this episode, Craig Fuhr and Jack BeVier welcome Kris Garin from Riparian Capital Partners to discuss managing tenant issues. Riparian has grown rapidly, acquiring over 1,300 units since 2020, with many properties in post-industrial cities like Baltimore, Pittsburgh, and Detroit.

Tenant Screening for Better Tenant Relationships

Garin highlights that managing tenant issues begins with comprehensive tenant screening and setting clear expectations. Riparian conducts detailed audits to assess obligations and delinquency rates. Before lease signing, they explain that tenants are responsible for all obligations, reducing future tenant issues.

Tenant Relocation for Improved Property Conditions

If units have major issues, Riparian offers tenants alternative units. This relocation ensures tenant satisfaction and improves property standards, addressing tenant issues before they escalate.

Fostering Respect to Reduce Tenant Issues

Riparian builds respectful relationships to prevent tenant issues. Garin notes that tenants who feel respected are more likely to meet obligations. Additionally, Riparian’s prompt communication system helps tenants feel heard, preventing complaints.

Implementing a Unique Tenant Screening Approach

To further prevent tenant issues, Riparian requires proof of past on-time payments. This approach ensures they attract tenants who meet obligations, maintaining steady relationships.

Conclusion

By focusing on early screenings, clear expectations, and tenant respect, Riparian minimizes tenant issues, building a community with long-term stability.