Multi-family property with vestibule and front lawn

[James Schmidt]

I'm looking at purchasing a quadraplex. It is a 2 story building and has 3 x 1/1 apartments and a single 2/2.  It's a beautiful building, but needs some work (not a problem). I've looked over the books of the current owner and they are spending a lot on cleaning the vestibule and mowing the front lawn. Now, I would initially purchase this property and live in one of the units for the first few years which would allow me to take care of that myself. When I decide to move on, this "no-man's land" becomes an extra bill that eats a few hundred dollars away from earnings every month! 

I have considered xeriscaping the front lawn to reduce maintenance, but what about the vestibule? I find that part of the property concerning, knowing that once I move away I will need to hire regular service to keep the landing and indoor staircase clean. Since all the apartments are accessed from this indoor area, I'm not sure if that makes the property a flop when I move out. Has anyone seen something similar to this?

[John Warren]

@James Schmidt there are several ways to handle this in the small multifamily space, and I am glad that you caught on to this early on. A lot of my clients over look landscaping, snow removal and common area cleaning when they run numbers. 

I personally pay between $15-17.50 per cut at my apartments, and I have most of the lawns cut bi-weekly. There are landscaping guys out there who are not very expensive, and if you ask around you will find one that is extremely reasonable. Honestly, I don't think it makes much sense to do your own yard work even when you are living there. 

When it comes to cleaning the common areas, you may see how much cleaning they actually need. I have a four unit building in Lyons, IL, and I just vacuum and sweep every few months. It really doesn't get very dirty as the tenants are conscientious. I also have several larger apartment buildings in Berwyn where there are more families. I try to identify a good tenant who might be interested in a small discount for taking care of cleaning and shoveling snow. So far, I have found a guy who will clean all the hallways, clean the laundry room, and shovel/salt in the winter for a $100 reduction in rent. I consider this an excellent value as the work is done regularly, and he takes pride in the property since it is his home. 

In my 19 unit building, I have a resident manager who cuts the lawn, does the snow, cleans the common areas and basements, and I give him a $200 reduction in rent. This is a much larger building though, so I consider that to be fair.