Upgrade Your Rentals And Get Higher Rents

Buildings that are held for rental income must be kept up to the standards of the newly built properties in order to maintain the maximum cash flow. A recent survey gave information about what is being done in modernization projects, and for what reasons. Here are some of the findings:

• Among the percentage of properties being modernized, office buildings made up 60%. Apartment buildings were next at 18%, followed by shopping centers at 16%, and hotels-motels at 5%.

• Energy conservation is a big concern in remodeling/modernization projects with 82% of the owners implementing specific conservation measures to reduce energy consumption. HVAC systems (77%), re-lighting (65%), windows (57%), and re-roofing (54%) are the leading energy projects involved in the modernization projects.

• Another key reason for the modernization is appearance. Therefore, new carpets are part of the project for 89% of the group. Indoor lighting fixtures (88%), painting (87%), and doors and entrances (83%), are also popular elements of the changes.

• The ages of the buildings being upgraded is most often between 10 and 20 years old (46%) or between 21 and 30 years old (35%).

The Owner's Reasons For the Upgrades

Here are the reasons given by the owners:

• Upgrade facilities and increase profits.

• Provide space for new programs or services.

• To keep competitive.

• To replace worn out systems and equipment.

• For safety and efficiency reasons.

• Replace outdated equipment and furnishings.