Steve-Inwood
Maintaining / Increasing value
Mon Mar 8, 2010 16:56
167.230.38.116

Hi,

This is a great topic. From my perspective, here are some items to consider:
Have reserve funds
A great audited Financial Statement says wonders to a trained professional and in this city, a lot of casual users too. It says that the Board knows what it is doing and maintains the fiscal flexibility to handle unforeseen problems. If you dip into the Line of Credit, be sure to repay it by the end of the year.

Do not defer capital repairs/replacements
Who wants to buy into a dump? We replaced all of our windows with double glazed, argon filled, casement windows and new A/C's and added approximately $5k to $10k a unit in value, saving heating costs and increased our quality of life with reduced exterior sounds.

Encourage renovation before a sale
Talk to you shareholders about reinvesting in their units. Don't sell treasury stock units 'as is' comparables matter. Discuss with your lawyer what you can and can't do here.

Maintain a moderate to a slightly-above moderate maintenance charge
Don't get into fiscal trouble and have so high a maintenance that it dampens your unit values. Don't have so low a charge that your complex looks like a 'hand me down' and your financial statements are on life support. A good rule of thumb is $1 per square foot per month. Go ahead, get the funds and paint that hallway! At the same time, invest in cost saving capital replacements that lower operating costs.

Encourage internal harmony
Internal recommendations work wonders. Make sure to encourage harmony between the staff and shareholders too. This makes for a better quality of life too.

Take a look at your property from the perspective of a prospective buyer
This is a big one. An uncluttered, professionally painted and clean lobby says a lot about what values the community has. Don't neglect the exterior - plant (and care for) some flowers near the building entrances. We get blinded to imperfections when we see them everyday. Walk in one day with a note pad and take notice like you are seeing the building for the first time. Write down what you see and make a plain for the manager and staff to correct and imperfections.

Get the renters out
Encourage owner occupancy owners just care more, it's natural.

  • Maintaining / Increasing value Bloom, Mon Mar 8 13:07
    What are the top priority issues that a board should focus on in order to maintain, dare I say increase, values of the apartments in their building, and the building itself?
    • Maintaining / Increasing value Steve-Inwood, Mon Mar 8 16:56
      • I think this is a great question and topic as well... Steve has some valuable insights and tips.. thanks... Another good rule of thumb is to budget about .75 cents per foot per year for exterior roof ... more
        • Maintaining/increasing value BP , Fri Mar 19 08:53
          I heartily agree with Steve and AR on this topic. I'd like to add to AR's note on doing things that don't cost much. This may seem petty, but it's surprising how little things cam enhance new buyers' ... more
          • Maintaining/increasing value RLM, Fri Mar 19 23:38
            Hear, hear for all of the above. Maintenance, especially, is key - both above and below the surface. And here, here's my two cents: Much as New Yorkers value property values, they also value the... more
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