Six months ago, Joe and Ann bought their first apartment building with us. The growth of Silicon Valley had resulted in many new job opportunities and attracted new tenants from all over the US. The apartment building they purchased was in an excellent neighborhood, close to freeways and shopping. B However, the building was old and in a very dilapidated condition. For whatever reason, the seller never modernized the building and kept the rent below market in an effort to keep the building fully occupied. Joe and Ann were very excited about the prospect in investing in booming Silicon Valley real estate market but felt completely overwhelmed with the task of renovating an older property and re-tenant an empty apartment.
We spent six months renovating this property, bringing it up to the modern standard that safety regulations and new tenants expect. . We visited the job site daily and supervised every detail of the remodeling work, from a new roof, landscaping, stairways, interior and exterior work for the building itself to new kitchens, windows, and flooring in every apartment unit. To generate the maximum rent, we also installed separate washer and dryer in each apartment unit because we know that that the tenants in today’s market are expecting to have individual laundry available in their own apartment instead of going to a coin-operated laundry machine.
After the remodeling was completed, we put the apartment back on the market. Within the first ten days, we got eight offers, and we signed three leases right away. Yesterday, we rented the remaining unit to a very well-qualified young couple.
Through this process, we had raised rent 36% above the previous rental value. And based on the recent market evaluation, the property is worth 25% more than what we had bought it for six months ago.
Joe and Ann was very pleased with our effort and the result. They trusted us to do the right job.