Matching Tenants To Apartments
Matching Tenants To Apartments
Property managers must always think about the type of tenant that is most likely to reside in that particular building. For example, when apartments in a project rent for lower monthly amounts per year, tenants will be concerned primarily with shelter. This means a safe, clean, efficient building but without frills and amenities.
On the other hand, if the apartments will rent for the highest amounts per year, for that area, tenants typically expect and demand much more than just shelter. These tenants want a luxurious life-style, and that means the building may contain a health club, a swimming pool, a private park, and similar conveniences.
Things That Matter
In the lower priced units, investors will concentrate more on the basic design and layout of each apartment and on the reliability of such things as the elevator service and the garbage disposal. For common areas, the workings of the lobby intercom system and the location of the mail boxes, for example, are prime considerations.
However, at the more fully equipped building, the investor faces increased costs of construction and maintenance of areas that produce not direct rental income. If these life-style areas become the slightest bit shabby, it can lead to tenant dissatisfaction and vacancy.
In the life-style buildings, turnover and subleasing is more prevalent because the kinds of tenants in the buildings are more apt to seek to “improve their life-style.” This means that they are more likely to move along to the next newer and more luxurious building that is constructed. Nonetheless, the well equipped, well maintained building usually has a very low vacancy rate. In fact, it often has a waiting list of prospective tenants that assures full occupancy for a long time in the future–a good sign for investors