Proper Building Maintenance and Building Assessments

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With nearly 40 years in business, Braden Equities Inc. is a premier property management company in Edmonton and the surrounding area. Our management style is tailored to the unique needs of each one of our clients, and we work as a team to ensure that every project is treated with the care and attention it deserves.

performance assessments

 

A building performance targets the areas of your apartment that cost you the most money and eat into your profits. It puts each expense under a magnifying glass, looking at it from every angle possible and evaluating it compared to averages.

 

Edmonton Investment Performance Assessment

When you calculate your apartment's numbers, it can feel a little overwhelming and hard to understand. Our straightforward assessment is based on your building’s vacancy rate, utilities/unit/year expenses, and your expenses/unit/year.

To break this down even further, read on.

Vacancy Rate

To calculate your vacancy rate, add your monthly vacancy rate numbers together and divide it by 12. Then, multiply that outcome by 100, and divide it by the total number of units in your building.

 

Related blog: https://blog.bradenequitiesinc.com/-albertas-vacancy-rates-outlook-for-2018

 

Utilities/Unit/Year Expenses

For this calculation, divide the annual cost of utilities for your building by the total number of units.

 

Expenses/Unit/Year

For this last one, divide the annual amount of operation expenses by the total number of units in the building.

 

At the end of the day, these are the main things that will affect your revenue. They are all expenses you deduct from your income; anytime they increase, your profit decreases. If you have a larger apartment complex, then the effect is bigger; it will multiply. If you have a 10% vacancy rate in a bigger building, that's huge.

 

A building performance assessment is a valuable tool that will help you become a more insightful and successful multi-family real estate investor.

 

The only way to improve your ROI right now is to control your operating expenses. Building performance assessments are the way to increase your profits.

 

Once you conduct a building performance assessment, you can improve your entire building and increase your ROI by targeting expensive pain point issues like maintenance, utility expenses, vacancy, and turnover.

 

For the purpose of this blog, we’ll be examining what we mean when we say maintenance.

 

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Building Maintenance

Maintenance is the process of ensuring that buildings and other assets retain a good appearance and operate at optimum efficiency. Inadequate maintenance can result in decay, degradation and reduced performance and can affect heath and threaten the safety of users, occupants and others in the vicinity.

Depending on its design, quality of materials and workmanship, function and location, buildings deteriorate at different rates and require different levels of attention. No building will ever be maintenance-free, but the quality of the design and workmanship can minimise the level required.

Common maintenance tasks include:

  • Exterior painting and plastering
  • Landscaping and gardening
  • Paving repairs
  • Debris/rubbish removal and clearance
  • Removing fungal stain or mould
  • Gutter clearance and repair
  • Window and door repairs
  • Changing tiling or flooring
  • Updating plumbing and HVAC
  • Building services maintenance

Maintenance can help building owners prevent the process of decay and degradation, as well as maintain structural stability and safety. When investors conduct regular maintenance, they prevent unnecessary damage from the weather or from general usage and optimize the building’s overall performance.

Maintenance also determines the causes of defects and so help prevent re-occurrence or repetition and ensures continued compliance with statutory requirements.

Once you conduct a building performance assessment, you can improve your entire building and increase your ROI by targeting expensive pain point issues like maintenance, utility expenses, vacancy, and turnover.

At the end of the day, these are the main things that will affect your revenue. They are all expenses you deduct from your income; anytime they increase, your profit decreases. If you have a larger apartment complex, then the effect is bigger; it will multiply. If you have a 10% vacancy rate in a bigger building, that's huge.

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These issues can't be solved overnight. Improvement takes time. The earlier you start to address these expense areas, the sooner you will be able to realize savings and higher ROI.

There are a lot of aspects of being a multi-family real estate investor that you can't control. You can't control your tenants, their jobs, or the economy. The one thing you can impact is your operating costs. Take the first steps to creating a more successful apartment building. If you would like assistance calculating the numbers required for our performance assessment, get in touch with us today!

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