I have personally worked with Jim Kasten for eight years. During the course of our business relationship, I have found Jim to be a “master” at leading.
How To Maximize The Value Of Your Metro Phoenix Apartments
While most multifamily owners know the importance of maintaining curb appeal and operational health of their investment, it is never more important than just before a sale. Simple cosmetic enhancements and good bookkeeping can have a significant impact on the final sale price.
Even if you are not ready to sell, these recommendations should improve tenant retention, yield stronger occupancy and higher rents.
Things to improve a buyer’s perception of the property and show pride-of-ownership.
- Regular attentive maintenance: rake the rocks, pick up the grounds & sweep walkways daily
- Trim trees, bushes, landscaping
- Clean (shock) pool
- Update, repair or replace pool furniture, equipment, and signage
- (Get tenants to) remove, or store, personal property away from balconies and porches, and clear walkways and yards visible from the street
- Consider a fresh top-coat on asphalt driveways and re-paint parking blocks
- Repair gates, latches, hinges, doors to laundry, storage, courtyards, etc.
- Fix the little things
- Replace all cracked & broken glass
- Window coverings clean & repaired. No foil or other trashy looking materials allowed
- Touch-up paint the trim, gutters, door trim, doors, planters, window sills, roof soffits, fences, gates
- Service existing fire extinguishers and paint the cabinets, or install new ones
- Update, re-paint or replace unit numbering on unit doors so that all are uniform in appearance
- Clean and paint area around the dumpster and parking lot
Keeping organized books will impress buyers and lenders which makes closing a sale faster and easier.
- Make sure all leases are up-to-date, organize tenant applications, addendums, information, etc
- Maintain P&L ‘Profit and Loss’ statements. Keep track of monthly income & expenses in detail – keep receipts
- Maintain a ‘Rent Roll’ with refundable and non-refundable tenant deposits shown on the rent roll. Also show lease start and expiration dates
- Keep a monthly rent roll history in the files
- All ‘other income’ needs to be accounted for
- Document capital improvements for each unit (new installations, tiled floors, upgraded fixtures, etc) Keep warranty documents on appliances,
- A/C units, fridges, etc
Polishing up your property and records can significantly increase the saleability of your apartment property. So too can moving a few of your tenant’s leases up to market-rate. In doing so, we can make the case to the buyer’s appraiser of your property’s pro-forma potential; the value it would have if ALL leases were moved to market-rate. Generally speaking, and if the tips shared here are applied, apartment owners can potentially a net boost in sale price as buyers are willing to pay a premium to get into the metro Phoenix apartment market.
What Is A Broker Price Opinion? Do I need one if I’m not selling?
A broker price opinion, or BPO, is a report that can be prepared by a broker, appraiser, or agent. A BPO, also referred to as a broker opinion of value (BOV), can help an owner get an idea of the current market value of their multifamily or commercial property.
It’s not uncommon for owners to obtain periodic, time-specific, BPOs. Knowing your property’s current market value influences your equity decisions such as taxes, refinancing, selling outright, or choosing a 1031-exchange.
Full-blown appraisals, typically required by lenders during a sale, can be biased towards the numbers appearing on a purchase contract. Who better qualified than multifamily brokers closing multiple sales and millions of dollars in transactions to provide this information?
We cut no corners to find the best buyer at the best price for your metro Phoenix property fast, and charge a reasonable commission.
Here’s how our Broker Price Opinion (BPO) works…
- First we gather property specific data from you like basic financial info (P&L), and a current rent roll. Ideally we would set up a time to walk the property and see any vacant unit, WITHOUT DISTURBING TENANTS. Otherwise knowing the general condition and any updates you have made should be sufficient.
- We take this data and plug it into our market experience, daily transactional involvement, recent sales and apply an income and expense approach with the current market’s capitalization rate to arrive at an as-is value.
- Then we analyze potential income scenarios using our insights into operational adjustments, minor repairs, possible rent adjustments and other income modifications to assist owners in optimizing their property value – whether they are looking to sell or not.
- We’ll recommend a target “sale price” and describe our plan to sell it at that price quickly. We’re 100% transparent, so ask us any questions you have!
- If you choose to sell, we use a Flexible Listing Agreement: Pay a fair commission, and Cancel With 30-Days Written Notice For ANY Reason – Anytime!
Once valuation is determined, a summary market perspective is provided to inform owners of the state of the current market cycle, investment trends, economic fluctuations, financing and more. While concise and accurate information is provided in our BPOs, the context and perspective provided enables property owners the ability to execute effective and equitable decisions in a timely manner.
Our winning marketing plan and experience helps reduce the days on market and get you the best price.
Curious about who we are? Great! Learn More About Us Here
Sell Your Phoenix Arizona apartment or multifamily property Faster And For A Higher Price. Let’s talk!
call us today at 602-445-4141!
Phoenix Area Rents Have Changed. Values Have Changed.
What’s Your Apartment/Multifamily Property Worth Today?
Property values are changing in Phoenix and all around Arizona.
Fill out the short form below to get a no-obligation, BPO (Broker Price Opinion) Valuation Report for your Phoenix area property with up-to-date nearby “solds”, market data and our recommendations on how you might capture a higher potential sale price.