The Ridgeview Report
Why We Always Renovate Our Apartments
Every property in the Ridgeview Property Group portfolio is either fully renovated to Class A finishes or is too new to require updates. You won’t find pink bathroom tile, shag carpet, or groovy 1960s wood paneling in our buildings. RPG prioritizes renovated properties because they make for more sound investments. Properties with higher credit tenants and lower crime levels make for happier management staff. Operating expenses run leaner thanks to reduced property damage, lower tenant turnover, reduced utility bills, and reduced maintenance costs. The renovation photos in this newsletter offer a glimpse of our recent work at the Riverway Apartments in Champlin.
Renovated Apartments Attract Better Tenants
Less Workload For Management Staff: Modernized apartments tend to draw tenants with better credit and cleaner criminal records. This not only streamlines the leasing process but also reduces stress on our leasing staff. On a day-to-day basis, staff experience fewer tenant complaints, less resident infighting, and less time spent chasing unpaid rent. Providing a safe environment and minimizing stress for leasing and maintenance staff is a top priority.
Less Crime: Reducing crime rates is a pivotal outcome of our commitment to modernization. Property damage and evidence of crime not only affect current residents' peace of mind but also deter prospective tenants. The feeling of unease caused by disturbances or incidents of theft can disrupt resident morale, making them more likely to move out.
Updated Apartments Have Lower Operating Costs
Less Maintenance: Renovated properties have lower maintenance needs, and therefore fewer work orders. Aging cabinets, faucets, toilets, and appliances lead to more frequent maintenance requests. Forecasting these costs can be challenging, making operational budgeting less predictable with older properties.
Reduced Water Usage: Old properties exhibit higher water usage, and the expense associated with water can be substantial. Outdated shower heads and faucets contribute to significantly elevated water consumption levels, emphasizing the importance of upgrading to high-efficiency alternatives. Today’s toilets use 1.3 gallons per flush or less, whereas toilets from 40 years ago use 5-7 gallons. In actuality, most apartment owners can’t afford to NOT update water fixtures.
Modern Light Fixtures Save Money: Replacing incandescent light bulbs with LEDs leads to cost savings for both residents and landlords. Taking it a step further, in our latest renovations we opted for integrated LED light fixtures. LED light bulbs tend to fail early when installed in enclosed light fixtures, leading to maintenance requests. Integrated LED light fixtures last significantly longer in our experience.
Decreased Pest Control Costs: Renovated properties experience fewer pest issues, particularly bed bugs. Not only can the remediation costs add up quickly, but news of pest infestations can cause tenants to become more likely to move out.
Lower Tenant Turnover: Renovated units tend to experience lower turnover rates, as they attract and retain tenants more effectively. Minimizing tenant turnover is a top priority as turnovers often entail significant costs, including apartment preparation, labor for re-leasing, and vacancy costs.
Less Move-Out Damage: Unattractive, dated apartments attract tenants that may cause higher levels of interior damage. A few costly unit turnovers a year can take a toll on a property’s bottom line.
Minimized Bad Debt: Renovated apartments generally invite tenants who are more likely to pay their rent. Once a property is renovated, the investor can expect their bad debt (unpaid rent) to shrink as a percentage of income.
At Ridgeview Property Group, our commitment lies in the transformation of properties, making them not only safer but also more profitable investments. If you're interested in staying informed about our upcoming acquisitions, please register below to receive updates and additional information about our future projects.
Market News
Ashland Greene's Multifamily Expansion
Ashland Greene's multifamily acquisitions are making headlines, taking their portfolio to 6,000 units across 20 properties. Their recent purchase of 709 units in the Dallas Fort Worth area is significant, reflecting their commitment to property improvement. They're upgrading both individual units and amenities across these properties. Another property within the portfolio is set for a $7 million renovation, highlighting the importance of unit upgrades for streamlined property management.
Source: TheRealDeal. Ashland Greene buys three multifamily properties as spree continues. https://therealdeal.com/texas/2023/09/12/ashland-greene-buys-three-multifamily-properties-as-spree-continues/
Tips and Tricks
Tips:
Class A Renovations - Class A renovations encompass property upgrades aimed at converting aging or lower-quality apartment finishes into upscale and contemporary living environments. These enhancements generally include stainless steel appliances, luxury plank flooring, granite countertops, modern lights, and new kitchen and bathroom cabinetry.