Timing a makeover in Visual Studio .NET

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Timing a makeover
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A variety of factors may influence your timing of a renovation: Market considerations: Property improvements could help make a property more attractive to potential tenants or purchasers Undertaking improvements at a low point in a market in anticipation of increased demand is a common strategy that can position your investment to deliver a decent return
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Part IV: Building Value: Managing Your Investment and Seeing a Return
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Tenant considerations: Depending on the scope of renovations you plan, you may have to work around tenants or terminate their leases altogether by invoking the demolition clause in the tenancy agreement, a clause that gives you the right to evict them when substantial upgrades are planned Limiting disruptions to your tenants whenever possible is probably in your interests Material and labour considerations: The availability and cost of materials and labour may prompt you to accelerate or defer renovations in an effort to control costs and maximize the return on your planned investment At the time of writing this edition, a heated construction market in many parts of the country has created shortages in labour and driven up both wages and the cost of building supplies prompting people to defer projects, scale back, or accelerate to meet the limitations of available financing Thoroughly assess the various time-sensitive factors that could affect your project, such as the factors driving the need to renovate by a certain date, increases in construction costs, and market conditions You may discover that you don t need to complete the project right away, or, alternatively, that you should get to work as soon as possible As the rabbi Hillel famously asked, If not now, when Renovations typically require municipal approval Approval times can range from days to months, depending on various factors The nature and complexity of your renovations are two considerations The more complex the makeover, the more time the municipality will take to review your documentation for the work Municipal staff may also face a backlog of applications if renovations are booming in your community; your project may not be their first priority! The skill, experience, reputation, and connections of your architect or contractor may also expedite (or retard) the processing time Be sure to research typical approval times in your municipality and account for these and potential delays in your makeover plans
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Working with tenants
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Announcing a major renovation to tenants requires tact Some tenants may be threatened by your plans, others will accept it Your goal should be the least disruption possible in the daily lives of tenants and your cash flow Here are some key tenant concerns: Eviction: You may not want to lose tenants, and tenants also want to avoid having to find new quarters Clear and open communication making sure tenants know from the beginning whether they will be asked to leave will smooth the way Where evictions are necessary, be sure to provide plenty of lead time so that tenants can find new accommodation, put their affairs in order, and generally conduct an orderly move
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15: Accounting for Gain
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During a major renovation, consider not leasing units as tenants leave, or providing short-term housing in an alternative rental property you own Such an approach not only maintains cash flow from the property, it saves some tenants the hassle of having to find new digs Debris and noise: Renovations that don t require evictions may prompt tenant concerns regarding the amount of construction activity that will be taking place You don t want tenants to feel they re living on a construction site Good construction managers will try to ensure a limited amount of dust and disturbance, but making sure tenants are comfortable with what s going on is equally important Rent hikes: Renovations cost money You may choose to hike rents when you lease up vacant suites following a renovation, but carefully consider the question of rate hikes for current occupants Part of the goodwill you offer existing tenants may be to keep rents the same as before the renovations this can help to ensure the loyalty of longterm tenants whose lives may have been disrupted, even if the makeover improved common areas such as the foyer or laundry room Making overtures to tenants to maintain goodwill during a renovation project is essential to preserving your cash flow It also makes good business sense When planning a complete overhaul of a building, for example, see whether existing tenants have an interest in leasing in the renovated property Some tenants won t want to leave, creating confrontational situations and potentially a challenge to the eviction Successfully fighting the challenge may require documenting the notice given to tenants of any eviction or temporary relocation and any offers made to tenants to accommodate them during the renovation and the response tenants gave to the offers Although many courts will side with the tenants, landlords must be prepared to document that the utmost care was taken to accommodate tenants and minimize the disruption to their lives The rights and responsibilities of tenants and landlords are governed by provincial legislation We provide a list of the provincial authorities governing landlord tenant relations in 17, including Web sites providing relevant guidelines
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