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What are the top priority issues that a board should focus on in order to maintain, dare I say increase, values of the apartments in their building, and the building itself?
I think this is a great question and topic as well...
Steve has some valuable insights and tips.. thanks...
Another good rule of thumb is to budget about .75 cents per foot per year for exterior roof and facade repairs and LL11 and place this money into a special money market account for when its needed.
Green sells right now, look into green and energy saving areas that you can not only save money and the environment with, but it create great bragging rights because it raises eyebrows to say that you have solar power, or a green roof (these are great), or that you recycle the water from the roof drains for toilets... the windows were a great investment for Steve and can be for you also...
We have REAP Construction doing a roof deck, building windows and a front garden area for us at one of my buildings.
Adding amenities that do not cost much is another plus... storage, gym, playroom, arts & Crafts room, roof deck, etc...
~AR
I heartily agree with Steve and AR on this topic. I'd like to add to AR's note on doing things that don't cost much. This may seem petty, but it's surprising how little things cam enhance new buyers' opinion of a property. A few ideas:
-- If you have curbside trees in front of your building, fix the tree pits if they're bare or in poor shape. If you can't afford nice wrought iron railings, put some fencing or wooden borders around them. Don't spend a lot because they can be damaged easily (e.g, parking cars back into railings around tree pits). Also, plant flowers in the tree pits. This adds a cheerful, well-kept touch to the area.
-- Upgrade your lobby if it looks outdated or needs maintenance. Replace worn furniture, get new rugs or lighting, add a few live plants. The lobby is the first thing buyers see in a building, and first impressions make a difference.
-- Keep other common areas that buyers see in good condition (e.g, hallways, rec rooms). A fresh coat of paint or nice wall art helps. Also, make sure common areas are clean and bright. Paint apt doors if they have a lot of chips and scratches.
All the things that Steve and AR mentioned are important, but it's also important not to overlook the small stuff.
Hear, hear for all of the above. Maintenance, especially, is key - both above and below the surface.
And here, here's my two cents:
Much as New Yorkers value property values, they also value the feeling of being at home where they live. Good Board/Resident and inter-Resident relationships should be strongly encouraged, with clear communication, frequent or at least regular Resident social gatherings, a written and/or web communication vehicle, and attention paid to Resident concerns quickly and efficiently. Passing on information to new Residents about area take-out places, schools, wineshops, restaurants, hardware stores and grocers is a good way to make them feel at home (for larger buildings... have you tried arranging co-op/condo discounts with local merchants? a little value-added goes a long way, for both parties.) Impressions of comfortable, friendly, interesting neighbors and neighborhood, and of a good community in and out of the building, are important to buyers (it was for us, and I bet it was for you, too.)
Work with local realtors, too; show them your building before they ever set foot in it with a prospective buyer. Show off that new roof, or the new elliptical machine, or the new DVR security system, or the new laundry machines (something has to be new). Introduce them to the Superintendent staff. You want every broker possible to know your building well enough to talk about it comfortably and with first-hand knowledge; get them invested in promoting your building, and perhaps you'll have fewer undersells.
Finally, think outside the box. Always.
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Hi,
This is a great topic. From my perspective, here are some items to consider:
Have reserve funds
A great audited Financial Statement says wonders to a trained professional and in this city, a lot of casual users too. It says that the Board knows what it is doing and maintains the fiscal flexibility to handle unforeseen problems. If you dip into the Line of Credit, be sure to repay it by the end of the year.
Do not defer capital repairs/replacements
Who wants to buy into a dump? We replaced all of our windows with double glazed, argon filled, casement windows and new A/C's and added approximately $5k to $10k a unit in value, saving heating costs and increased our quality of life with reduced exterior sounds.
Encourage renovation before a sale
Talk to you shareholders about reinvesting in their units. Don't sell treasury stock units 'as is' – comparables matter. Discuss with your lawyer what you can and can't do here.
Maintain a moderate to a slightly-above moderate maintenance charge
Don't get into fiscal trouble and have so high a maintenance that it dampens your unit values. Don't have so low a charge that your complex looks like a 'hand me down' and your financial statements are on life support. A good rule of thumb is $1 per square foot per month. Go ahead, get the funds and paint that hallway! At the same time, invest in cost saving capital replacements that lower operating costs.
Encourage internal harmony
Internal recommendations work wonders. Make sure to encourage harmony between the staff and shareholders too. This makes for a better quality of life too.
Take a look at your property from the perspective of a prospective buyer
This is a big one. An uncluttered, professionally painted and clean lobby says a lot about what values the community has. Don't neglect the exterior - plant (and care for) some flowers near the building entrances. We get blinded to imperfections when we see them everyday. Walk in one day with a note pad and take notice like you are seeing the building for the first time. Write down what you see and make a plain for the manager and staff to correct and imperfections.
Get the renters out
Encourage owner occupancy – owners just care more, it's natural.
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