Comments on: The Early Bird http://silverspringpenguin.com/2009/04/27/the-early-bird-26/ Your neighborhood news source Tue, 24 Aug 2010 18:23:16 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Woodsider http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48509 Woodsider Thu, 30 Apr 2009 16:23:57 +0000 http://silverspringpenguin.com/?p=3752#comment-48509 Sorry to say, but the "lessons" you are hoping real estate managers will "learn" will not happen--and never will as long as we are in a capitalist society and not a socialist one (or unless rent control is imposed). Real estate developers and management companies are in the profit-making business. Sorry to say, but the “lessons” you are hoping real estate managers will “learn” will not happen–and never will as long as we are in a capitalist society and not a socialist one (or unless rent control is imposed). Real estate developers and management companies are in the profit-making business.

]]> By: LuvMyHood http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48437 LuvMyHood Wed, 29 Apr 2009 12:55:06 +0000 http://silverspringpenguin.com/?p=3752#comment-48437 Hey, Woodsider, "massive turnover" sounds painful. Best to have small annual increases. One of the many bad things about the recent real estate boom is that real estate was seen as a prepetual money machine. Why were housing costs going up and up when incomes were stagnant or falling for so many people? If we don't get national healthcare and a commitment to continually training and employing people, 20-somethings, 30-somethings and 40- and 50- somethings will be headed for their mother/uncles/offspring's basements. Hey, Woodsider, “massive turnover” sounds painful. Best to have small annual increases. One of the many bad things about the recent real estate boom is that real estate was seen as a prepetual money machine. Why were housing costs going up and up when incomes were stagnant or falling for so many people? If we don’t get national healthcare and a commitment to continually training and employing people, 20-somethings, 30-somethings and 40- and 50- somethings will be headed for their mother/uncles/offspring’s basements.

]]> By: Woodsider http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48408 Woodsider Wed, 29 Apr 2009 02:26:55 +0000 http://silverspringpenguin.com/?p=3752#comment-48408 LuvMyHood: It really depends on how much turnover cost/time is...newer properties cost less to turnover than older. Landlords generally have higher revenue when rents for existing residents are increased to keep up with the market, but kept a little below what new residents would pay. Where landlords get in "trouble" (profit-wise) is when they are more concerned about occupancy than revenue and they go years thout increasing the rent on existing residents. Eventually, when the market is on the upswing they will often increase the rents on existing residents a considerable amount to make up for the lost time...and then they have massive turnover. Depending on how strong the market is at the time, it could be worth the hassle. LuvMyHood: It really depends on how much turnover cost/time is…newer properties cost less to turnover than older. Landlords generally have higher revenue when rents for existing residents are increased to keep up with the market, but kept a little below what new residents would pay. Where landlords get in “trouble” (profit-wise) is when they are more concerned about occupancy than revenue and they go years thout increasing the rent on existing residents. Eventually, when the market is on the upswing they will often increase the rents on existing residents a considerable amount to make up for the lost time…and then they have massive turnover. Depending on how strong the market is at the time, it could be worth the hassle.

]]> By: Stuart Moore http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48404 Stuart Moore Wed, 29 Apr 2009 01:31:56 +0000 http://silverspringpenguin.com/?p=3752#comment-48404 By Wednesday evening, you won't be caring about air conditioning, but you can think about future air conditioned locations, like the Elizabeth Stickley Auditorium. Attend a presentation about the Old Blair Auditorium Project (7pm, Wednesday the 29th), where the county's hired architects will be presenting four renovation options for the auditorium. Meeting is at Silver Spring International Middle School at Dale and Wayne (which does happen to be air conditioned during the warm season). http://oldblairauditorium.org/ See you there! By Wednesday evening, you won’t be caring about air conditioning, but you can think about future air conditioned locations, like the Elizabeth Stickley Auditorium. Attend a presentation about the Old Blair Auditorium Project (7pm, Wednesday the 29th), where the county’s hired architects will be presenting four renovation options for the auditorium. Meeting is at Silver Spring International Middle School at Dale and Wayne (which does happen to be air conditioned during the warm season). http://oldblairauditorium.org/

See you there!

]]> By: LuvMyHood http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48388 LuvMyHood Wed, 29 Apr 2009 00:56:50 +0000 http://silverspringpenguin.com/?p=3752#comment-48388 Woodsider, I wonder how many 2-bedrooms are occupied by people who live as housemates. Some people stay single for a long time. Say 2 people lived in a 2-bedroom for, say, 7 years. Do landlords make more $ when people stay for years, or more $ when tenants turn over faster? Woodsider, I wonder how many 2-bedrooms are occupied by people who live as housemates. Some people stay single for a long time. Say 2 people lived in a 2-bedroom for, say, 7 years.
Do landlords make more $ when people stay for years, or more $ when tenants turn over faster?

]]> By: Woodsider http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48366 Woodsider Tue, 28 Apr 2009 18:32:46 +0000 http://silverspringpenguin.com/?p=3752#comment-48366 They <i>could </i> combine apartments but fiscally it wouldn't make sense to do so. You'd never be able to charge enough for the new 2BR to justify the loss of two 1BRs. They could combine apartments but fiscally it wouldn’t make sense to do so. You’d never be able to charge enough for the new 2BR to justify the loss of two 1BRs.

]]> By: LuvMyHood http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48364 LuvMyHood Tue, 28 Apr 2009 18:15:27 +0000 http://silverspringpenguin.com/?p=3752#comment-48364 Hey, Woodsider, could some of the apt managers combine some of the 1-bedrooms and make them 2-bedroom? I've read that coop owners have tried to do that in NYC sometimes, but faced reluctant boards. Also, every apt building should allow cats. And it would be fine to have an extra deposit for them. They should also have plenty of laundry machines that work well, also. Hey, Woodsider, could some of the apt managers combine some of the 1-bedrooms and make them 2-bedroom? I’ve read that coop owners have tried to do that in NYC sometimes, but faced reluctant boards.
Also, every apt building should allow cats. And it would be fine to have an extra deposit for them.
They should also have plenty of laundry machines that work well, also.

]]> By: Woodsider http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48351 Woodsider Tue, 28 Apr 2009 15:19:44 +0000 http://silverspringpenguin.com/?p=3752#comment-48351 IHY, you're right...there has been considerable "household consolidation" in the apartment market, which it's more difficut for apt companies to rent studios or 1BRs. 2BR + 2BA's are in very high demand. There is, however, the misconception that if there are some vacancies that the property is having a hard time leasing. The old saying in the apartment business is "If you're 100% occupied then then the rent is too low". Apartment companies are in the business of maximizing revenue, not occupancy. The sweet spot varies, but is typically around 94%--meaning they make more money with 94% paying higher rents than 100% paying lower rents. IHY, you’re right…there has been considerable “household consolidation” in the apartment market, which it’s more difficut for apt companies to rent studios or 1BRs. 2BR + 2BA’s are in very high demand.

There is, however, the misconception that if there are some vacancies that the property is having a hard time leasing. The old saying in the apartment business is “If you’re 100% occupied then then the rent is too low”.

Apartment companies are in the business of maximizing revenue, not occupancy. The sweet spot varies, but is typically around 94%–meaning they make more money with 94% paying higher rents than 100% paying lower rents.

]]> By: chaz http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48349 chaz Tue, 28 Apr 2009 14:50:55 +0000 http://silverspringpenguin.com/?p=3752#comment-48349 FWIW, they had the AC on at Twin Towers by last night :) FWIW, they had the AC on at Twin Towers by last night :)

]]> By: IHateYuppies http://silverspringpenguin.com/2009/04/27/the-early-bird-26/comment-page-1/#comment-48323 IHateYuppies Tue, 28 Apr 2009 04:29:30 +0000 http://silverspringpenguin.com/?p=3752#comment-48323 Very true, Woodsider. We have some vacant units sitting in building 8484. I have a friend who lives in Blair Tower and he notices vacancies there as well. Conclusion: the recently unemployed 20-somethings are moving back home to Mommy and Daddy. Very true, Woodsider.

We have some vacant units sitting in building 8484. I have a friend who lives in Blair Tower and he notices vacancies there as well.

Conclusion: the recently unemployed 20-somethings are moving back home to Mommy and Daddy.

]]>