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Posts Tagged ‘repositioning budgeting’

Are you trying to figure out a way to raise the rent on your multifamily apartment property? You can raise rents through a process called repositioning. Whenever you buy a property and make improvements or repairs or convert a property from a Class D to a Class C or a Class C to a Class B, you are repositioning. There are three ways you can reposition your multifamily apartment property.

1. Cosmetic: You are likely to hear some vernacular in the industry like “putting lipstick on a pig”. This refers to things like painting or landscaping and anything else that is non-structural in nature.

2. Complete Rehab and facelift: This option is more involved. You can put in all new appliances and new carpet on the vacant units and completely rehab it so some of the stuff looks new. The rehab does not necessarily change the class that the property is in. For instance, if you have a Class C multifamily apartment property that was built in the 60′s, it will still be a Class C after you rehab it. Read the rest of this entry »