02/24/21 – MultiHousingNews: The ABCs of Class B to A Upgrades
A data-based approach can help determine whether a renovation is financially feasible, according to Rob Devlin and Ron Takaki of Gafcon.
By Rob Devlin and Ron Takaki
Communities across the country are dotted with mid-20th-century-era multifamily housing complexes that are not only showing their age but can also be out of compliance with safety regulations. Property owners are well-advised to weigh risks and gains, though, before renovating these properties to maximize potential, ensure code compliance and increase cash flow.
An initial financial and physical assessment of the complex should include rough order of magnitude cost estimates on anything from out-of-code balconies and railings to kitchen upgrades. This analysis can also predict market return on the renovation investment.
This critical information, missing from most major-scale renovation projects, will help property owners determine which upgrades and repairs will yield a return on investment in the form of rent increases, lower tenant turnover, reduced maintenance costs, lower utility costs for tenants and more. Read More>