http://www.biggerpockets.com/renewsblog/2009/09/28/if-your-rental-property-apartment-building-is-100-occupied-your-rents-are-too-low/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.biggerpockets.com/renewsblog/2009/09/28/if-your-rental-property-apartment-building-is-100-occupied-your-rents-are-too-low/#comment-73965 Jeff Smtih Tue, 06 Oct 2009 18:08:50 +0000 http://www.biggerpockets.com/renewsblog/?p=7302#comment-73965 While I am a proponent of retaining tenants by offering a better deal than the next guy, you just can't ignore the relationship between noi and value. What a paradox! Thanks for the point to ponder, Kyle. While I am a proponent of retaining tenants by offering a better deal than the next guy, you just can’t ignore the relationship between noi and value. What a paradox! Thanks for the point to ponder, Kyle.

]]> http://www.biggerpockets.com/renewsblog/2009/09/28/if-your-rental-property-apartment-building-is-100-occupied-your-rents-are-too-low/#comment-73120 Jonathan Wed, 30 Sep 2009 16:02:04 +0000 http://www.biggerpockets.com/renewsblog/?p=7302#comment-73120 I understand your point, and it is a good one, but your assumption that expenses would stay the same is very misguided. Under your conservative and more realistic figures, GOI increases $6,912, but you've neglected to consider turnover costs. To turn over 8 units, in my experience, is gonna cost much more than $7k, unless you're doing the work yourself. So, from a cash flow standpoint, maintaining lower rents is the way to go. I understand your point, and it is a good one, but your assumption that expenses would stay the same is very misguided. Under your conservative and more realistic figures, GOI increases $6,912, but you’ve neglected to consider turnover costs. To turn over 8 units, in my experience, is gonna cost much more than $7k, unless you’re doing the work yourself. So, from a cash flow standpoint, maintaining lower rents is the way to go.

]]> http://www.biggerpockets.com/renewsblog/2009/09/28/if-your-rental-property-apartment-building-is-100-occupied-your-rents-are-too-low/#comment-72998 Joshua Dorkin Tue, 29 Sep 2009 22:20:32 +0000 http://www.biggerpockets.com/renewsblog/?p=7302#comment-72998 A friend of mine suggested that there is some optimum number that someone calculated in terms of vacancy percentage. I'd love to hear more about that if anyone can find the data. A friend of mine suggested that there is some optimum number that someone calculated in terms of vacancy percentage. I’d love to hear more about that if anyone can find the data.

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