Are You Aware?
A broker friend of mine in the Tri Cities area of Washington state (Richland, Kennewick, Pasco) is a superb provider of real estate services to his clients. He has set a high bar and his level of service is something I strive for each and every day. He’s current and encyclopedic regarding local market knowledge, along with having his finger on the pulse of national issues, such as changes in the debt market, directly affecting his clientele.
In one of his recent newsletters he published a list of 10 issues typically faced by non-institutional apartment owners. Many of these items are common sense and ones every owner should be aware of. Concurrently, however, they are often overlooked or forgotten.
- Maintenance – old roofs, older plumbing and electrical, inefficient fixtures; investigate and recommend specific repairs or vendors
- Untrained site staff – I cannot tell you how many times I’ve caught an on-site manager violating Fair Housing, ADA and ethical rules
- Turnover/make ready – most owners accept more than 8 days vacant for make ready (except for major renovations). I don’t.
- Local regulations/rent control – With COVID and pressure from tenant groups, these regs are in a constant state of flux – are you up to date?
- Slow or non-paying tenants; suggest cleaning up leases and rent collection procedures with institutional grade paperwork and files
- Increased utilities: usually most of these owners haven’t heard of RUBS, let alone implemented a RUBS program
- Amenities or common area; add or renovate to improve curb appeal; and sometimes laundry vendors will give renovation dollars with new contracts
- Fire/flood damage; NEVER accept the insurance settlement – hire a public adjustor and treble bid the work (if possible) to get a realistic settlement
- Depreciation – sometimes a 1031 makes sense to start a new depreciation schedule on the up-leg property that has significant tax implications that alone will add to the owner’s bottom line.
- Cash flow – you tell me you’re “making enough”; help me to understand why you wouldn’t be even a little interested in looking at scenarios that show you what a trade could look like?
Let Svikhart & Associates assist you in making your multifamily investment property more valuable by doing an on-site evaluation of the physical plant along with a review of your budget, operating statements and rent roll. The goal of the firm is to assist owners in realizing the maximum benefit from what is for many the single largest investment most will make in their lifetime.
Please find us at www.svikhart.com or contact me directly at 801-550-5684 to learn about the range of real estate services our firm provides.
PREVIOUS POST
1 thought on “Are You Aware?”
Thanks for your blog, nice to read. Do not stop.