The last year has been very difficult for many multi-family property owners in Alberta. The average property investor has experianced reduced spending and higher vacancy rates as a result of the recession which has had a tough impact on real estate investors in particular.
That’s why in times like these it is ever more important to set your property apart and attract the attention of new tenants, as well as maintain the interest of your existing ones.
Lower Cost of Materials and Labour
Anyone who has tried to complete a construction project during an economic boom can attest to the extremely high material and contractor costs. Renovating your income property during such times can make it quite difficult to find people to complete work, especially when it is on a smaller scale. Construction is one of the first things that start to slow down during a recession. Projects are put on hold, timelines are delayed and business owners are often forced to cut down the size of their staff to stay afloat.
Additionally, the slowdown means that contractors must face greater competition to acquire work. Deciding to upgrade your building before the market picks up again could mean saving a great deal of money. It also means that you are supporting contractors within your community at a time when they need it most, an integral aspect of sustainability that adds to the value of a project.
Less Disruption When Things Get Busy Again
The market is going to get better sooner or later. But waiting until the market is back in full swing to renovate may be easier said than done. Renovations are disruptive to your tenants, and could even mean temporary vacancies. Better to do this when things are slower so that you are ready when you need to be.
The design and renovation process also takes time and energy. Consulting with General Contractors will require your full attention at times. That’s why when things get busy you’ll want to be free to ensure your tenants are receiving the attention they deserve.
Strengthening your building by refreshing your look can be achieved with a wide range of budgets. That means you don’t have to break the bank to give your property a much needed update. Remember: if your renovation is done well it will give your investment property the boost it needs during a recession.
If you carefully manage your income property in a tough economy, you will come out of the downturn in a better financial position.