Field Asset Services, a property preservation firm based in Austin, Texas, has become “a household word” with utility companies and municipalities, according to Dale McPherson, president and CEO.
Under its utilities services, FAS offers relationship management with the utility provider, billing consolidation, flat-rate billing, and agent and attorney reimbursements.
“This is something we were pressed into action on by our clients,” McPherson said.
“In the evolution and development of that process, we’ve become quite good at it. We now have over 50,000 properties that we are routinely paying for utilities companies. We’ve been able to leverage that to do some really cool things in terms of batch payments and surety bonds for deposits.”
The management of utility deposits on so many houses can be overwhelming for a lender client, he pointed out.
“In the past, they have left this with the listing agents and then each client gets 10,000 invoices every month that they have to manage and administer. Are they accurate? Is it the right house? Centralizing, consolidating and then leveraging has been extremely meaningful for our clients,” he said.
Now FAS is offering utilities management as a stand-alone service. “Even if you don’t do other business with us, you can buy utilities management.”
For one flat rate customers can bundle “everything,” including code compliance management, utilities management, the remodel bids, the initial services and the recurring services.
“When you combine that with our pay as you go flat rate, you define your scope that you want for your initial services from the Fannie Mae Cadillac to if you want to minimize it and cap the amount of debris and get a lower price. You can customize that scope and have an initial service price. And then customize the scope for the recurring service. We’ll identify a monthly rate for recurring.”
Every property stands on its own in terms of its total cost from acquisition to sale, he added. “Houses that sell quickly are obviously going to have less recurring expense. Instead of a flat rate for all the recurring services and you may not use them all, then you pay as you go. One house might take 12 months to sell while another takes two months and they will look different in terms of total costs.”
REO homes can be sold tenant-occupied, McPherson said. “If it’s an investor profile property, where an investor can cash-flow it, absolutely get the tenant in there. When you sell it you are going to get more money for it. We don’t mind getting work done while a tenant is in there.”
