Poor Quality Units

That was the critical point in time that I missed the boat. With the owner's promise to do more in the future, I agreed to the new paint, carpet and vinyl as our only improvements. Sure enough, the units were rented (still below market) to very marginal tenants. For much of the past two years we have had to post eviction notices for both tenants. Poor quality units attract poor quality tenants.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Upgrades Cost Money

In year two of this ugly duckling property management, both units go vacant. Now, I thought, is the time to upgrade, which included the following: new kitchens and bathrooms ($25,000), new electrical ($4,000), new paint/carpet/vinyl ($10,000), new appliances ($3,000), new roofs ($5,000), new yards/sprinkler systems ($10,000) and miscellaneous ($3,000) for a grand total of $60,000. After my client recovered from shock, we discussed what he really could afford to do. He had $10,000 allocated to upgrade the duplex and not a dime more.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

The Ugly Duckling

Now to the ugly duckling property. A few years ago, I took on a duplex in a more difficult part of town. Steel sash windows, 1950's kitchens and bathrooms, ten year old carpet, poor yards and no garages. The owner assured me of his willingness to make them into swans. Both units were occupied, having a rent commensurate with the low quality of the units. There was no practical way to upgrade the units while they were occupied.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550 which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.