Apartments for sale Salem Oregon- Repositioning

Apartments for sale Salem Oregon 

One of the best ways to earn a higher return on investment is with Apartments for sale Salem Oregon or rather the re-positioning of an apartment complex done right.  Apartments that fall into a state of disrepair and have large vacancy numbers are what we are looking for.

Nine times out of ten the problem lies with the manager and the owner so once you have purchased the property and the old owner is out of the picture, make sure the manager is soon to follow. It is the two of them that created this mess.

With any apartment re-positioning project you will also be re-positioning the tenant base. Make sure that your projected gross income during the repositioning process (11/2 to 2 years) takes in to account that about 30% of your current tenants will leave with the higher standards and rents that are soon to arrive. Just remembering this is a good thing.

Apartments for sale Oregon

We now own an apartment complex and we are ready to start.

The first thing that we need to do is hire an apartment manager. If the right on is hired the apartment remodel will be much easier. Make sure to get a management company that has national standards.

Like any other construction project screen and select sub-contractors, collect paper work and start the ball rolling. A reputable management company will have allot of experience with construction and repairs. Make sure all workers are held to high standards on workmanship.

During this re-positioning process, you have been very careful to use building materials that have durability. Quality building materials along with quality work will ensure the work will last for a good length of time. This also is essential to create an environment for them to live in nicer than before so rents can be raised.

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You might ask yourself how does this way of re-positioning earn any extra profits, were getting to that.

Our main goal throughout this project is to create a place where people WANT to live, a place where they brag to their friends about how cool it is and a place they feel safe in. This right here is where your NOI (net operating income) will increase.

What we have done is increase the normal tenancy of a renter, because they like it here, let them spread the word about how great it is to their friends, this greatly reduces marketing costs. When people like the place they live in they stay longer.

Apartments in Salem Oregon are a great investment.

When they stay longer there are fewer make-ready’s.

A make ready is the cost to re-paint, clean, shampoo carpets and get the apartment ready for the next renter. This cost is one of the biggest costs on your expense sheet. Reducing this greatly increases you NOI.

Our main goal in all of this is to increase occupancy to 94-96%. Increase rents to be competitive with similar apartments and to reduce expenses. This is the name of the game.

We want to build a sense of community within the complex. This is accomplished in many ways. We are trying to bring people together to create friendships. This is one area that needs to be properly planned out because the expenses are worth it at the end of the year.

There are many ways of doing this.

Your manager should have a BBQ for everyone every 4 months. This brings people together and sets you apart from other apartments. The complex should have flowers planted and the grounds be well cared for. There should be exterior fencing to create security for the residents and plenty of lighting. If the complex houses children, a playground should be constructed for their enjoyment. You are creating a place they want to be.

Apartments in Oregon

Another idea is to have a monthly drawing for 100.00 cash prize. Everyone who paid their rent by the first of the month or before would be entered to win. This one trick saves lots of money if the 100.00 prize winner is known by all, every month.

Send out a monthly newsletter, let everyone in the complex know what is going on around them. Let them know you are there to help.

This is just a couple ways to create a sense of community. This will keep people happier and around longer.

Everyone wants a nice place to live, give them this and they will stay.

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Let me help with your next investment property. Contact me at al@cronemiller.com or visit my site at www.homesforsalesalemoregon.net.