Managing, listing and selling multifamily apartments is a lot easier in the ‘up’ market we’ve enjoyed over the past three to five years. Interest rates and cap rates were at historic lows, the demand for apartments was high, rents moved up, concessions disappeared, occupancies remained high for extended periods of time and many properties had waiting lists for available units. When the market shifts as a result of higher interest rates, and subsequent inflationary pressures, along with the possibility of a recession, there is something of a ‘reset’ across the board.

Many believe that rental rates have plateaued in most markets. Many residents are staying put vs. seeking an upgraded property. Concurrently, managers must now work harder to effectively manage both revenue and expenses. In this cooling-off period, there are many ways by which owners and managers can stive to maintain or improve property values. Addressing deferred maintenance and capital expenditure items are two of them. Resident relations are also critical at this time and is something I’ve preached to every owner/client who would listen.

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management and the entire scope of a multifamily  investment. Specific diligence is on property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets (10-to-60-unit properties) and provides a full range of brokerage services for property listing and sale.

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides.

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