Using surveillance, staying on top of maintenance, and saving money.
Preparing for a property value assessment can be a lot work. Property managers have a lot of tasks under their belts, and it's not always possible to make repairs immediately. When the time comes for an inspection or value estimate, having management run around playing catch may cause more havoc than wanted. Assuring that management stays organized and coordinated through out the year will help prevent property value from falling, but there are a handful of options you may not have thought of, that can help raise your property value.
When the value of property raises, selling or expanding your business at the right time can have major impacts. As we learned from the market in 2007-08, the global economy can fluctuate with little warning. Land and property are some of the most valuable assets when the market changes. Therefore, if you are in the business of property management, it’s crucial to continue bringing up the value of your assets.
Reasons Why Value Depreciates
When a properties value depreciates, it is normally due to poor upkeep and damages to property. Sometimes it stems from an irresponsible tenant, or damage from a large accident. The most common problem that causes depreciation is neglected repairs, which can be solved easily.
It's common for apartment managers to get overwhelmed with property damage, they may not address an issue immediately. Having a record of all the complaints, repairs, and requests make them harder to neglect. Neglected repairs add up quickly, and ‘band-aides’ can only last so long. So staying on top of repairs and fixing damage quickly is surely a great method of increasing property value.
Leaky roof or flooding basement
Heating and cooling problems
Faulty or missing lighting, interior and exterior
Issues with pipes and water leaks
Cutting corners with repairs can come back to bite you. If the complaints keep coming, then you can pretty much guarantee yourself that your property value is decreasing over time. Just like neglected repairs, poor maintenance is all to common with apartments. Quality landscaping helps to keep your business looking clean and inviting, all while providing some added benefits. Shrubbery can boost security and privacy, walkways allow tenants to enjoy the property, and landscaping also provides your business with another opportunity to ‘stand out in the crowd’.
Poor pool quality
Dirty hallway floors
Delays with trash collection
Poor parking lot quality
Poor or overgrown landscaping
These factors may have nothing to do with your property, but they play a role on property valuation overall. Every location has it up and downsides, but finding out what effects your property value and providing a solution gives your business a competitive edge.
An abandoned building nearby
Lack of maintained yards or lots overgrown with nature
Nearby noise pollution such as a hospital, highway, construction projects, industrial businesses, etc.
Factors that effect air quality, such as dumps, factories, abandoned and moldy properties
Nearby criminals or sexual offenders (which is searchable via criminalwatchdog.com)
One quality of apartment maintenance, over-looked by many, is choosing to make upgrades. If an apartment manager is trying to save money, chances are that upgrades will be set aside, so that repairs can be made. “If it’s not broke, don’t fix it”, right? Wrong! Outdated appliances and the need for renovation can bring down the property value. As competitors make renovations, their values go up, making it more necessary to compete. Giving your tenants shiny new appliances or a brand-new bathroom sink can be the difference between tenants coming and going, or tenants sticking around long term. Responsible tenants, who rent long term are ideal for raising property value and keeping your property profitable.
Raising Property Value
With the above information, it seems that lowering the value of your property is more possible than raising it, but like all things, patience and hard work pays off. To simplify the concept, valuation starts with first impressions. Having solid employees that understand the complexity of first impressions, is key!
First Impressions matter, and come from all directions.
Tours and demos
Residents visiting friends and relatives
Inspections and contractors
Neighbors and community members
Online presence and social media
Foster your team of employees into becoming a superstar team of professionals that can handle any situation. Spend more time monitoring them, providing for them, and rewarding them. This creates a philosophy of abundance within your business, which can benefit both property owner's and tenants.
Make a list, then eliminate any of the factors that lower your property’s value. Assure that the maintenance staff is fully prepared to fix all repairs, do not brush one small mistake under the rug. Own up to every situation and provide a solution, even if it costs you. It will be worth it in the end! Create a better community by being quick to fix any landscaping damage or vandalism, as this negatively affects the whole neighborhood.
Combat annoyances by providing a more sound-proofed rental, via double-paned windows, solid doors, extra insulation, etc. If you are located close to a highway or loud industrial business, provide some added sound deflection. Maybe you could plant shrubbery as a perimeter or build a wall where necessary.
Security and Safety
Using security cameras in common areas can also raise the property value. Managers can see exactly what happened if there is an accident. This prevents false claims from hurting business. Physical presence of cameras, alone, is enough to deter many criminals. But if not, having footage of event is valuable in prevention. Share your footage of a vandal or a suspicious character with local law enforcement. That piece of footage may be all they need to stop the vandalism. Some NVR surveillance systems possess the ability to go back to specific events and show you exactly the footage you are looking for. It is smart to add lighting to darker areas, surveillance cameras, and “recording on property” signs to help raise the value of your property by preventing criminal attention.
Being an active member of the local neighborhood watch is a great way to become more involved with creating safe communities. If you live in an area where this doesn’t happen yet, consider starting it up! An active neighborhood watch will help raise the value of your property.
Access control systems are another great way of protecting your property. Apartments often provide tenants with amenities such as a clubhouse, pool, gym, spa, park, etc. Access control can keep non-tenants out of these restricted areas. Maintaining all equipment in a working order is crucial for your property’s value. Limiting amenities to tenants only, prevents misuse, assures that tenants have access to what they paid for, and saves money. (Spend less capitol on repairs, and more on renovating that outdated room!)
According to roofstock.com, for 78% of home buyers, quality of the neighborhood is more important than home size. If another’s property is causing blight in your neighborhood, consider offering them incentive to make repairs. Introducing yourself as a business owner in the area, only with intentions of attracting business, is totally understandable. Reporting neighborhood blight is another good opportunity to raise value. Keep your tenants feeling comfortable and safe, by looking out for neighborhood blight.
Creating a friendly, safe, and thriving community for your tenants will inevitably raise property value. Whether it be through market fluctuations, or long-term tenants who truly love where they live. As a landlord or property manager, doing everything you can to boost the standard of living is a win/win situation.
eos Business Surveillance Solutions
Phone: (810) 433 - 3308