Nexus Property Management’s Jesse Mayo Talks Real Estate Investment in Central Massachusetts

PROPERTY OWNERS IN WORCESTER NEED PROFESSIONAL PROPERTY MANAGEMENT: IS THE SAME TRUE IN YOUR CITY OR TOWN?

Jesse Mayo is the owner and operator of Nexus Property Management’s Worcester, Massachusetts franchise office. He opened his doors in 2020, during the Covid pandemic, and due to early success recently bought and moved into a new mixed-use building on the corner of West Boylston and Mountain Road up in Greendale. Jesse had the opportunity to sit down with Tim Murray, President and CEO of the Worcester Regional Chamber of Commerce, to talk about the services his team provides and how essential those services are in a city with the 6th or 7th oldest housing stock in the country.

WHAT DOES NEXUS (OR ANY PROPERTY MANAGER) PROVIDE?

Professional property management is a no-brainer for experienced real estate investors. The monthly management fee can actually be seen as a part of the investment. For that fee, in addition to maintenance expenses and one-time tenant placement or leasing fees, you get…drum roll please…PASSIVE INCOME…and peace of mind. Many new investors buy a property because they expect that real estate naturally yields passive income, but they’re quick to find that phone calls at all hours, freezing pipes and snow removal coordination in the winter, and mowing lawns come summer are anything but passive. If you are retired and/or have a flexible family situation, you can manage your own property, but it’ll be work. If you have a full-time job and kids, do-it-yourself property management is going to be a handful.

“I WASN’T LOOKING FOR ANOTHER JOB, I WAS LOOKING FOR PASSIVE INCOME”

Nexus is a full-service property manager that finds solutions for all maintenance and leasing issues that arise for our clients. We respond to tenants’ needs so you don’t have to. Fixing leaky faucets, fielding emergency calls at midnight, advertising and placing tenants, handling evictions; every step of the journey is handled and communicated to you efficiently and with transparency so you can collect that passive income that brought you to rental property investment in the first place.

Nexus only collects a management fee on occupied units, so our incentives are aligned with our clients goals. That management fee is a percentage of the monthly rent, so it’s also in our best interest to rent at a rate that makes property owners happy; again, as is central to the Nexus model, interests are aligned. And when it comes to costs, Mayo shares that it is commonplace for him to sit down with prospective owners, to look at the rent rolls, and find a plan where long term returns may increase to the point that management fees are covered in addition to added monthly returns.

LEARN MORE: WHY DO IT YOURSELF PROPERTY MANAGEMENT FALLS SHORT

LEARN MORE: IT’S EXTREMELY DIFFICULT TO HIRE A MAINTENANCE VENDOR FOR YOUR SINGLE PROPERTY

WHY IS IT SO IMPORTANT IN THE WORCESTER AREA?

According to a Worcester Telegram story from 2021, Worcester has the 7th oldest housing stock in the country. What does that mean to local investors? As Mayo can attest to, the triple deckers in the area are typically 200 years old. They’re tired properties. If managing property in general is a lot of work, managing these older properties is even more laborious. Concerns about leaky faucets are joined and trumped by roof replacements, the need for new siding, and plumbing and electrical issues that naturally occur with age.

And we don’t have to look too far back in the Telegram to be reminded of the housing price boom we saw in recent years, prior to the Fed increasing interest rates. While it was obvious to all onlookers that it was a hot sellers’ market, it may not have been as apparent that concurrently many rental property owners were rejecting costly maintenance needs. Why replace a roof that needs replacing when I’m going to sell this apartment in the next year or two? The reality is that so many of the properties that were purchased in the 0% interest era have experienced deferred maintenance for years and even decades. You might’ve gotten in thinking you can cut your kid’s hair by just shaving his head or placing a bowl on her head, but the intensity of the demand here is that you’ve gotta get her ready for prom and you just can’t do it without a professional. The needs in Worcester and old cities like it are just too great.

LEARN MORE: WHY TENANTS PREFER PROFESSIONALLY MANAGED RENTAL UNITS

IS YOUR AREA IN NEED?

Worcester is where Jesse and his team are working their tails off for their clients’ maintenance needs, but it’s not unique. The map below shows clearly that the northeast is home to the oldest real estate in the country.

The same source shares the table below. As you can see, Worcester comes in at #6 on the midsize city list in terms of percentage of homes built before 1940, at 42.5%. Look closer and you’ll see that Providence, Rhode Island,which is home to the first Nexus Property Management franchise office is #3 at 57.4%! If you then look at the small cities, New Haven, Connecticut, where Nexus opened its most recent office is similar to Worcester. Waterbury, CT, which is also serviced by the New Haven County office made that list as well. And if you continue on to the list of large cities, Boston sits at #2 with almost half the homes there having been built before the outbreak of WWII. Nexus’ other New England office, in Natick, Massachusetts, services Boston’s western suburbs.

SEE A PATTERN?

So what are the themes here? If you live and invest in rental property in the northeast, it is very likely you are working with this old supply of tired homes. It’s especially difficult to manage these on your own. Nexus supports and applauds those that do and provides numerous free tools to help the cause. It’s also apparent that Nexus’ teams are highly experienced as they have targeted these old population centers with four of their five franchise offices. The Nexus model has proven successful beyond New England’s borders, but it’s here among the dammed rivers that gave birth to the Industrial Revolution that the model has grown and been perfected. If you’re a real estate investor looking for help with the properties you own, or are looking to expand your portfolio with an expert in your corner, contact our team today.

MOST POPULAR NEXUS ARTICLES:

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.

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

You Could Own A Nexus Property Management® Office For Less Than You Think!