“I tell people marriage is a compromise and so are renovations.” Candice Olson

As the years go by, your apartments are probably looking a little less modern, regardless of the year they were built. Sometimes a complete makeover is warranted, but often a few changes can result in additional dollars in rental income.

IF NOT NOW, WHEN? The vacancy rates are not what they once were. Rent control has caused many tenants who are paying under market rents to stay put, rather than moving. It is much more difficult to get tenants to move out with the many new regulations. It may take many years to get to market rent with the limitations on rent increases because of rent control. With this in mind, when you get a unit vacant, you need to maximize the new rental amount because it could be a very long time before the opportunity comes around again.

SMALLER REPAIRS You should look at other similar properties in the area to see how they compare to yours. Do you have carpets or flooring? Do you have an air conditioner? Are your stove and refrigerator modern looking? Would you want those appliances if you were looking for a rental? How about your counters? Do you have contemporary doors? How about bathroom vanities and toilets and sinks? Relatively inexpensive fixes may cause your unit to rent faster to more qualified tenants. Do you supply internet? Do you have a private washer and dryer? Depending on unit size this could set you apart from your competition.

BIGGER REPAIRS Are your walls looking so bad that a coat of paint won’t help? Is there a way to reconfigure your unit to turn a one bedroom apartment into a two by adding a wall? Would opening up the kitchen give a whole new and larger look? These kinds of rehabs could be warranted if they will increase your income enough to pay for them in a few years. Remember that income will increase the value of your property as well.

KNOW YOUR FAIR VALUE In doing these repairs, big and small, it is very important that you do a rent survey to determine the potential rental value of your unit. This will also help you decide whether or not the proposed repairs will be cost effective.

“Whatever you do in life, surround yourself with smart people who’ll argue with you.” John Wooden

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.