Apartment Investors| Not All Multifamily Rental Buildings Are the Same.
Multifamily Apartment rental properties are not all the same. By that I mean, they often have different suite mixes i.e, One bedroom suites, Bachelor suites and Two and Three bedroom suites and often all of these types of suites are in an Apartment building. I have found a mixed suite mix the most popular with Investors as opposed to a building with all one or two bedrooms or bachelor suites.
And a lot of these buildings are heated differently, and some owners include the heating costs otherwise the tenant pays for their own heating inside their suite. Common areas such as hallways are heating costs borne by the Apartment Investor owner.
Apartment Investors you’ll find most new Multifamily Apartments now have electric baseboard heating or heat pumps( with a Heating and Cooling feature), for heating the building and each individual tenant suite. With these type suites the tenants pay their electrical heating cost.
These electrically heated suites will have separate electric meters so the hydro consumption is measured by BC Hydro in British Columbia and the Hydro use is billed separately to each tenant in the apartment complex.
Many of the Older Apartment have a central hot water system and the common area heating cost is paid by the building owner. Usually these types of Building use Furnace oil or Natural Gas for heating the domestic and hot water for heating the entire building.
Depending on a local Rental Market, Landlords may sometimes pay a tenants heating cost to attack or keep tenants.
Apartment Investors as you can see, not all Multifamily Apartment Complexes are the same.
Most Apartment Investors and Owners talk about Multifamily Apartment Values, when considering buying or Selling a Multifamily apartment. They will often refer to the local CAP rate (return on investment after operating expenses) and or some also count a asking price based on Suite per suite price i.e. $200,000 per suite or rent per square foot i.e. $2.50 sq.ft. and often all of these. This information will be available from a local experienced Apartment Realtor.
Apartment Investors| Not All MultifamilyRental Buildings Are the Same.