Comments on: How to Increase the Value of an Apartment Building Investment http://www.biggerpockets.com/renewsblog/2008/07/29/how-to-increase-the-value-of-an-apartment-building-investment/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Nick Myerhoffhttp://www.biggerpockets.com/renewsblog/2008/07/29/how-to-increase-the-value-of-an-apartment-building-investment/#comment-99862 Nick Myerhoff Mon, 12 Dec 2011 08:49:20 +0000 http://www.biggerpockets.com/renewsblog/?p=1134#comment-99862 Ted, I totally agree with your views on "Raising Rents". Most active landlords assume market rent is set by the last apartment they rented. This may or may not be true. I recently toured a large corner unit in Oakland which was offered at $890/mo. Because of the unique nature of the unit it was nearly $65/mo under priced however because the owner is managing so many other units they did not realize this one specific unit was under market. By comparison some landlords keep asking rents inflated deluding themselves that they will get the same replacement rents in a declining market. This is a dangerous game and the landlord always looses. Ted, I totally agree with your views on “Raising Rents”. Most active landlords assume market rent is set by the last apartment they rented. This may or may not be true. I recently toured a
large corner unit in Oakland which was offered at $890/mo. Because of the unique nature of the unit it was nearly $65/mo under priced however because the owner is managing so many other units they did not realize this one specific unit was under market.

By comparison some landlords keep asking rents inflated deluding themselves that they will get the same replacement rents in a declining market. This is a dangerous game and the landlord always looses.

]]> By: Georgihttp://www.biggerpockets.com/renewsblog/2008/07/29/how-to-increase-the-value-of-an-apartment-building-investment/#comment-91566 Georgi Tue, 01 Feb 2011 21:29:54 +0000 http://www.biggerpockets.com/renewsblog/?p=1134#comment-91566 Agree with all that, but quite often is good to look at the price of the land where your building stands and it might be the case that it is more valuable without the building(downtown areas) and proper new planning can be arranged for the plot. Agree with all that, but quite often is good to look at the price of the land where your building stands and it might be the case that it is more valuable without the building(downtown areas) and proper new planning can be arranged for the plot.

]]> By: pattie sciaccahttp://www.biggerpockets.com/renewsblog/2008/07/29/how-to-increase-the-value-of-an-apartment-building-investment/#comment-69883 pattie sciacca Wed, 09 Sep 2009 23:33:50 +0000 http://www.biggerpockets.com/renewsblog/?p=1134#comment-69883 Raising rents in rent controlled areas is a joke. Some cities only allow 3% (Los Angeles) which doesn't even cover the cost of utility increases. There are so many vacancies here that people are once again offering free flat screen televisions, low or no move-in costs, etc. Unfortunately, with the competition, we have to lower the rents, as small mom and pops, to get someone to rent. We just can't compete with what the larger complexes are offering, as well as not having the amenities they do. DO NOT buy in rent controlled areas. These cities have inspections and REAP programs where they take your building away and allow the tenants to pay one-half of their rent until their ridiculous violations are cured. Seems LA City wants to eliminate affordable housing by forcing owners into bankruptcy. Raising rents in rent controlled areas is a joke. Some cities only allow 3% (Los Angeles) which doesn’t even cover the cost of utility increases. There are so many vacancies here that people are once again offering free flat screen televisions, low or no move-in costs, etc. Unfortunately, with the competition, we have to lower the rents, as small mom and pops, to get someone to rent. We just can’t compete with what the larger complexes are offering, as well as not having the amenities they do.
DO NOT buy in rent controlled areas. These cities have inspections and REAP programs where they take your building away and allow the tenants to pay one-half of their rent until their ridiculous violations are cured. Seems LA City wants to eliminate affordable housing by forcing owners into bankruptcy.

]]> By: patrick pearsonhttp://www.biggerpockets.com/renewsblog/2008/07/29/how-to-increase-the-value-of-an-apartment-building-investment/#comment-60145 patrick pearson Tue, 23 Sep 2008 03:15:58 +0000 http://www.biggerpockets.com/renewsblog/?p=1134#comment-60145 Ted, Is there a standard for ratio of expenses to income. Ted,
Is there a standard for ratio of expenses to income.

]]> By: No Namehttp://www.biggerpockets.com/renewsblog/2008/07/29/how-to-increase-the-value-of-an-apartment-building-investment/#comment-59757 No Name Wed, 03 Sep 2008 03:50:48 +0000 http://www.biggerpockets.com/renewsblog/?p=1134#comment-59757 Amen to the paragraph on raising rents! Investors must realize that multi-family buildings are appraised based on an income approach. If you don’t raise your rents to keep pace with the market, you are not allowing your building to appreciate.It is extremely important that you reset your rental rates every time a lease comes up. If you don’t, you risk not being able to refinance the building when you need to on the terms and at the loan amount you want. Amen to the paragraph on raising rents! Investors must realize that multi-family buildings are appraised based on an income approach. If you don’t raise your rents to keep pace with the market, you are not allowing your building to appreciate.

It is extremely important that you reset your rental rates every time a lease comes up. If you don’t, you risk not being able to refinance the building when you need to on the terms and at the loan amount you want.

]]> By: Kingman Arizona Foreclosureshttp://www.biggerpockets.com/renewsblog/2008/07/29/how-to-increase-the-value-of-an-apartment-building-investment/#comment-59647 Kingman Arizona Foreclosures Fri, 29 Aug 2008 03:44:16 +0000 http://www.biggerpockets.com/renewsblog/?p=1134#comment-59647 Maintaning rental property and staying currnet with market rate, as in $'s per sq ft, is the best way to get the most out of your investment. Maintaning rental property and staying currnet with market rate, as in $’s per sq ft, is the best way to get the most out of your investment.

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