An apartment building roof replacement will manifest as a reality at some point. Like the other components and systems, eventually the roof will wear out enough that repairs just won’t be sufficient. When this occurs, you’ll have to replace the roof because it will certainly be more difficult to sell, nearly regardless of your exit strategy. While it’s a large expense, it can payoff in more ways than one. So, let’s take a quick look at what you need to know about an apartment building roof replacement.
What to Know about Apartment Building Roof Replacement
There’s no question an apartment building roof replacement is a major undertaking. It’s not at all like regular spring maintenance. Replacing an entire roof is a big commitment on your part. And, it’s not just about preserving the value of the property. Remember, this is a legal issue, as well. If there are problems with the roof and leaks damage tenants’ personal possessions, you could well be on the hook.
A multi-unit apartment substantially lowers risk. Vacancy in a large building is less impactful than a vacancy in a single family home or smaller apartment building. Landlords of multi-unit properties are able to spread the cost of maintaining the property more than the cost of maintaining multiple singular units. For example, replacing a roof on one apartment building with 4 units is likely cheaper per unit than replacing roofs on 4 single family homes. —Fits Small Business
It’s also a safety issue, since the law likewise requires certain living standards. The point being, you can’t simply ignore such a large issue, nor should you even try. At the very least, you should be proactive as possible, and take action as soon as it is a known issue.
Things to Consider about an Apartment Building Roof Replacement
When you’re faced with an apartment building roof replacement, you’ll obviously be concerned about cost. And, while that’s certainly understandable (and at the top of the list), there are some other considerations to take into account:
- How much will it cost? Let’s begin with the question every apartment building owner would definitely ask — how much will it cost? The real question is how much will it cost to put it off? Because that’s the reality of the situation. The good news is, you’re spreading the cost over several units. That’s definitely helpful.
- How long will it take to finish? Perhaps the second most-obvious question is about the timeframe. You need to know in order to effectively plan for future expenditures. The more that’s dedicated to the roof replacement, the more it will impact other projects.
- What inconveniences are anticipated? It’s a good idea to try to plan for any possible inconveniences. As you’re getting quotes, be sure to ask about not only the timeframe, but also, what are the most common inconveniences that are related to a roof replacement.
- What is the most realistic ROI scenario? Of course, it’s smart to run the numbers to ensure that it’s a financially feasible proposition. While you won’t get all of your money back out of it when you sell, it should have a reasonable return.
If you’d like to learn more about commercial real estate investment benefits and more about the carry process, please contact me.