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Insurance Claim in the Apartment May Have Opened an Upgraded Market in Roseville

By
Home Builder with Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 CSL#642819

 

Insurance Claim in the Apartment May Have

Opened an Upgraded Market in Roseville

 

 

There is an apartment community in Sacramento Region, in the city of Roseville, that had a moisture condition that destroyed the common wall between two kitchens of two units. The water damage included the drywall, cabinets, and counters among many things. These items were then upgraded when putting back together.

These were not super fancy, high-end improvements but certainly nicer than the rest of the apartments in that area. As a test, and mostly covered by the insurance claim, the unit used the improvements and marketed at a higher rent. These units are being rented about $150 per month more than the same units without the improvements.

I'm not an apartment manager but this sounds like a good return on the investment. Over a three year period that is an additional $5,400 in income, probably enough to cover the cost without an insurance claim. Perhaps the management company will consider upgrading more of the apartment units at this property in Roseville, CA.

 

 

Tromler Construction *** 916-765-5366

Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

A good lesson for all landlords Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366 There are way to many landlords out there that try to get every penny of use out of old carpet, plumbing, counter tops etc. Some truly deserve the title slum lords.

Mar 20, 2015 11:31 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Many owners are convinced that a quality product will attract better renters too Bob "RealMan" Timm !

Mar 20, 2015 11:35 PM
Raymond E. Camp
Ontario, NY

Good morning tom,

At least they have the right guy to do the upgrades.

Make yourself a great day.

Mar 20, 2015 11:40 PM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Tom that is a very interesting and useful story of a good investment.

Mar 20, 2015 11:52 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Thanks for the endorsement Raymond E. Camp 

Mar 21, 2015 12:25 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Thanks Noah Seidenberg 

Mar 21, 2015 12:25 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

What this means is that an apartment owner can collect a higher rent on a unit if prospective tenants smile when previewing or frown.

Mar 21, 2015 12:46 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

I think it makes for a good business decision. After all the owner has to pay for that insurance policy year in and year out. So this is a chance to recoup some of that required expense.

Mar 21, 2015 01:05 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Tom -  continually improving rental property is a necessity.  All rental property has a life and things must be refreshed.

Mar 21, 2015 01:46 AM
Virtual Realty Consultants
Virtual Realty Consultants LLC - Wellesley, MA
Making the American Dream a Reality

If the market will bear the rent and the tenants don't tear up the property, it might make sense to do some of these upgrades. I'm sure that the State of CA would be happy to subsidize apartment buildings that install water and power conservation measures in units as part of a rehab (if they don't, they should). Leaky and old pipes in some of these buildings are not jut an insurance claim away from a major disaster, but when there's a drought, the towns don't have any spare water to waste!

Mar 21, 2015 05:05 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Tom, It makes business sense however many landlords just focus on the money they do pocket each month.  In my area, as you know, rents are high even for what my dear friend refers to as "shit holes."  There are quotes there ... his words, not mine.  Making upgrades following an insurance claim makes perfect cents.

Mar 21, 2015 05:30 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Tom - It was certainly a cheaper way for this owner to check the market, and you may see more follow suit.

Mar 21, 2015 03:55 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

One of the ways to gage an investment is by the return method. Here, this clearly will pay for itself and then some too...good posting

Mar 21, 2015 11:39 PM
Paul Peck
Peck Drywall and Painting serving Brevard County, Florida - Melbourne, FL
Licensed Drywall and Painting Contractor

So true Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366 !

It's amazing how large the ROI can be on such small home improvements...  

Keep up the good work mate! 

-Paul

Mar 22, 2015 08:18 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366 - now that's neat!

Always good to rent something better! 

Mar 24, 2015 01:22 PM