Positive Cash Flow in a Slow Economy

Building a business in a slow economy isn't easy but Robert Barbera of Barbera Properties has achieved a 1% vacancy rate two months in a row.

People in Pasadena, Arcadia and other nearby cities have stayed in any one of 26 apartment buildings for one major reason: value.

There are over 500 units that are continually maintained and tenants have an open line of communication with the building manager.

Barbera Properties also made the decision not to raise rents as tenants' leases came up for renewal.

He made a strategic decision between trying to gain more revenue with increased income or reduce the number of vacancies. He chose to reduce the number of vacancies.

The Barbera Properties staff also started an incentive program of offering $ 200 to split between apartment applicants and those who referred them. A local business owner or friend of an applicant in Pasadena, South Pasadena or surrounding areas can refer someone to rent an apartment.

When the application is submitted and approved, then the referral source receives $ 100 and the applicant receives $ 100 as a bonus.

Robert Barbera and the staff have also chosen their target area to receive business: middle income professionals and families who want a comfortable apartment to rent in Pasadena, Monrovia, Temple City and neighboring cities.

"We also treat our tenants as partners," said Robert Barbera. "They're more than just a source of income. We want them to be happy."

The buildings don't have the glitz and prestige of newer developments like the Paseo Colorado or the Trio, nor do they have the expense, but the grounds are well-maintained and operated professionally.

Business owners in all industries can learn a valuable lesson from the operation of Barbera Properties: provide value to customers, stay in communication with them, respond to their inquiries in a timely manner, and treat them as valued partners.