Have you ever walked into a home and felt like the walls were caving in on you? Then, it felt like we should have been doing more regular inspections! It could be because the owners had too much stuff crammed into a tiny space. There's no bullet-proof strategy to sidestep hoarding. But usually, one of the best precautions is screening residents closely before signing a lease. Filter well to minimize the risk of hoarders taking over your property – a headache any property manager will want to avoid, if possible.
Despite the spike in online shopping, Cyber Monday 2023 topped 12 Billion in sales, we’re still only at the tip of the iceberg. Gone are the days of camping out outside of your local electronics store. If that indicates what’s still to come, managing deliveries will become increasingly important for landlords, property managers and HOAs. As technology continues to improve, we expect to see other solutions emerge. Until then, these strategies should give some reprieve as you adapt to residents’ changing needs.
Overall, multifamily real estate is a solid investment option that can provide inflation-resistant income, hedge against inflation, offer diversification, and provide tax benefits. As inflation rises, these benefits become even more pronounced, making multifamily real estate an attractive investment opportunity.
Investing in a low-cap rate environment can be challenging, but it is still possible to make profitable investments if you understand the reasons behind the low-cap rates and adjust your investment strategy accordingly.
Investors, sponsors, and property managers are increasingly vying for their share of this market demographic. That is why it is so essential to understand the priorities of older Americans. A range of property upgrades—some simple, others not as much—can be made to improve the appeal of your property among renters aged 55+.
These considerations are notwithstanding, the nature of the deal – including the conditions imposed by the senior lender – will principally dictate which of these financing tools, Preferred Equity or Mezzanine Debt is most appropriate. Like all savvy shoppers around, talk with many different bankers to distinguish which products are best for you or your group.
Commercial real estate, once deemed an alternative investment, is growing more mainstream. Opportunities that were once only accessible to institutional investors and other high-net-worth individuals are now advancing their way to the masses thanks in part to REITs. We foresee this trend to continue as more people look for ways to broaden their investment portfolios.
We will see how this coronavirus pandemic will reshape the housing market. To date, the impacts have been limited. This could change, mainly if there’s a retreat in lending. But most investors continue to be bullish on the U.S. housing market, with good reason. Evidence of substantial rent collections, few defaults, limited inventory, and historically low interest rates will bolster the industry.
When it comes to owning a rental property, an ounce of prevention is worth a pound of cure. Lessors are best served by getting comprehensive insurance coverage to protect against expensive expenses down the road. There are so many unknowns, particularly when renting to multiple residents. It’s better to pay a premium for coverage for the enhanced assurance that your investment is sufficiently protected.
These insights into the minds of youthful renters can help you, whether you’re evaluating a multifamily property or looking for better ways to manage your current portfolio. With Millennials encompassing such as a large share of today’s renting demographic, keeping their preferences in mind is always a wise idea.
There are numerous reasons to invest in multifamily as a product type. This isn’t to say that multifamily is foolproof—quite the contrary. For example, some may argue that multifamily is much more management intensive than the other product types. But a strong management structure, including a property management team and their vendors, can result in a highly lucrative investment.
The leasing process is deeply involved and multi-tiered, and that will never change. But when you use tech and training to your advantage in concert with being able to lean on your expertise to adapt to the continually evolving multifamily landscape, you can digitally streamline the leasing process.
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