How far in
advance should you get your Apartment ready to go “on the market"?
Darin Garman, CCIM
Copyright 2006 All Rights Reserved
Apartment property investors are
constantly asking me when is the ideal time to get their properties ready to
go "on the market."
Well, in my opinion I would start getting things ready
at least one year ahead of time. I know, timing is everything and you may
not have this much time due to circumstances being what they are, but
ideally it should be about a year.
Why a year? The MAIN reason is to get the rent up as
high as possible. You know the tenant that you have been really nice to over
the years. Letting them get by with lower (sometimes a lot lower) than
market rent? Well time to get the rent up there.
Why? Remember, the main points of value will more than
likely be the cash flow the property produces. So, the rents are key here.
Also, this will give you time to do the necessary work
and capital improvements that the buyer would possibly discount once the
property is on the market. I have known buyers that have literally changed
the value of their buildings by tens sometimes hundreds of thousands of
dollars by doing these things.
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