The beginning of the year is a time when many owners in the real estate industry take time to reflect and review the performance of their buildings. As active multifamily real estate brokers in the Puget Sound Region, we are exposed to the building operations of some of the most sophisticated and successful apartment operators. We have resources pertaining to all facets of building operations including lenders, insurance agents, rental data, rental strategies, effective advertising platforms, management companies, attorneys, and additional maintenance/remodel contacts.
Our expertise can assist in identifying where your building operations could be improved upon. Please reach out for a free property analysis and/or valuation to see how you could maximize your return on investment. Below are detailed the various sectors in which you may be able to improve to maximize your return and resulting property value.
Property tax assessments – Are your taxes too high? Do you need to appeal the assessed value? We can provide a valuation on your property to compare it to your assessed value and refer you to an expert to appeal your assessed value.
Lenders – Do you need to refinance soon due to an upcoming maturity date? Looking for an update on the current interest rate environment? Are you looking for the perfect combination of rates, amortization, and term? We have relationships with the most active lenders in the marketplace and can assist with the ideal time in this interest rate environment.
Insurance costs – Have you shopped your policy recently? We can let you know if you are paying too much for minimal coverage. We have a relationship with the highest quality insurance agents that are sure to cut back your insurance expenses while maintaining or even improving the quality of your insurance.
Rents – Are you keeping up with the market? We can provide rent comps within your neighborhood so you can see how your rents compare to your other neighbors’ buildings.
Utility Bill Backs – Are you charging back for utilities? We can provide the numerous strategies and utility reimbursement structures owners are using and discuss the best structure suitable for your building.
Additional Income Streams – Are you charging for parking, pet rent, storage income, and month-to-month fees?
Advertising – Are you reaching all renters? We have suggestions for new ways to reach out to potential tenants.
Management – Do you have the right team in place? Do you want to interview a new property management company to take over operations?
LLC formations – Protect your investments with LLCs. We work with local real estate attorneys that can help.
Vendors lists – Trusted referrals for rehabs, roofs, unit turns, full remodels, etc.
Tenant issues – We have resources that can help.
Landlord Maintenance – Recommended every 12 months:
- Do a full walk through of the property. Allows you to monitor your condition and identify areas for preventative maintenance.
- Put together a preventative maintenance checklist for all appliances, fixtures, carpets, paint, caulking, air filters, etc.
- Put together a Capital Improvements List that includes the date of any new systems as well as warranty expirations – roof, appliances, hot water tanks, replaced siding, furnace, etc.
- Put together a list of your annual expenses – taxes, insurance, water/sewer/garbage, common electrical, maintenance, and professional management. Compare your YTD totals with past Profit/Loss statements to make sure nothing is out of the norm.
- Review current interest rates and loan programs. If you have a loan in place it’s likely variable, 3-5-7-10 year money. Staying up to date with interest rates and planning ahead is key in this rapidly changing interest rate environment.
- Hire professional cleaners upon tenant move out. Yes, there is an expense associated ($200 roughly) but steaming carpets, painting walls, and dusting will help prolong the life of your units and capture a higher rent.
- Respond to tenants’ needs as quickly as possible. Any repairs such as a broken toilet, refrigerator, or range should be fixed within 24 hours, but preferably within 12 hours. This will go a long way to a healthy tenant/landlord relationship and less tenant turnover.
- Reach out to your tenants every 6-12 months with a handwritten note or email asking them to let you know if there is anything you can do to improve their tenancy.
Written By: Brian Platt, Michael Urquhart and Ben Douglas | Paragon Real Estate Advisors
Source: RHAWA CURRENT Newspaper