Several years ago, some might have concluded that suburban, garden-style apartment communities were on the wane. I’ve always been a believer in this product type, but there was a lot of talk about the growing popularity of high- and mid-rise apartments in infill locations.
A top-notch investor relations program is critical when foraying into multifamily investments. Unfortunately, it’s not completely unheard of for some multifamily firms to treat their investors as if they are fortunate to simply be along for the ride.
Buy an apartment community in need of upgrading, perform the needed renovations, boost rents accordingly and drive impressive returns. But just because apartment companies frequently undertake value-add projects, it doesn’t mean success in these endeavors is easy.
Having your own property management and construction divisions can bring higher workers’ compensation costs and subject you to more liability. But if an apartment owner is careful and deliberate in creating in-house property management and construction teams, its portfolio and its investors can benefit.