Lifestyle
3 Myths About Owning An Apartment Complex
Investing in apartment complexes can result in outstanding returns. Some surveys have found that owning a commercial investment property can net a 9.75% return per year!
Several myths about owning commercial real estate tend to discourage investors from taking the plunge, however. Consider the misconceptions below before you decide on owning an apartment complex.
And remember, you can rely on an experienced property management company to help you manage your investment and make your life a lot easier.
It Costs Too Much
It’s inarguable that most apartment complexes cost anywhere from $500,000 to multiple millions. But if you think that means you must be independently wealthy before you can invest, that’s not the case.
There are many excellent financing options that can enable you to buy apartment buildings and other commercial real estate. You will have to furnish a down payment in the range between 5% and 20% of the price of the building, but you can usually finance the rest at a low interest rate.
Your personal credit may be a factor in whether you receive the loan, but it’s more important for you to show that the property will generate enough cash flow to cover your mortgage and expenses. Also, you should have a sufficient amount of remaining funds for repairs and your profit.
The FHA offers several fantastic financing options with low down payments and interest rates for apartment complexes, so make sure to ask your loan officer about that financing option. But remember, you should have plenty of cash reserves in the bank when you buy an apartment complex so you’re ready for any unexpected expenses that come up.
Strong Housing Market Damages Apartment Demand
We are seeing strong demand for single-family homes in the US in 2021. So apartment demand must be plunging, right?
If this were true, apartment demand would have dropped during the real estate boom that peaked in 2005 and 2006. But demand for apartments rose alongside housing demand during this period. Why is that?
Evidence suggests that when the housing market is strong, demand rises for all kinds of living spaces, from houses to condos to apartments. There are many reasons for that, but most of it boils down to the health of the economy in general.
The same factors that lead to a strong housing market create demand for apartments to rise as well. So if you own an apartment complex and you see houses selling like hotcakes in your city, you can expect increased demand for your apartments. You might even be able to raise rents!
You Can Do Your Own Repairs
One way to save money when you own investment properties is to do the repairs yourself. This can be a great strategy if you know how to handle common maintenance issues, such as fixing the plumbing, minor electrical problems, etc.
But when you own an apartment complex, you may find yourself having to spend far too much of your time repairing the building than on other parts of your business. Even if you have the skill to do the repairs, your time has value.
There are other tasks that you may want to focus on to grow your business. This is why many apartment complex owners hire a property management company to handle the day-to-day needs of running an apartment building.
Your property managers can do everything from screening tenants to collecting rent to repairing the toilets. That frees you up to devote your energies to other parts of your business, and you’ll have more time to see your kids too!
Owning an apartment complex can generate outstanding cash flow for you, but it’s necessary to understand all the ramifications of ownership. If you keep the above myths in mind, you’ll have a better chance of owning a profitable building.
Lifestyle
The Breakroom Reset: Small Changes That Improve the Workday
The office breakroom is a space that’s often neglected and can sometimes feel more like an afterthought than a key feature of the workplace. This is unfortunate, especially since employees typically visit the breakroom to rest and recuperate before finishing their shift. Considering its intended function, the breakroom should be viewed as one of the most important spaces in the entire office.
Having a welcoming and rejuvenating breakroom can promote social interaction, enhance workplace culture, and reduce stress. Employees who feel restored after visiting the breakroom are more likely to feel happy at work and be more productive the rest of the day. If your workplace breakroom leaves a lot to be desired, here are some small changes you can make to totally reset it.
Small Breakroom Changes That Improve the Workday
Unless your breakroom is in shambles and needs major reconstruction, you don’t have to spend a fortune on it to make it more inviting. In many cases, small and simple changes can make a big impact on the overall vibe of any space.
Whether you’re working with a limited budget or limited space, there are still plenty of things you can do to reset your boring breakroom. Here are some small breakroom changes that can improve the workday and give you maximum bang for your buck.
Convenient Hydration Options
Employees need to stay hydrated to keep their health and energy levels high. Unfortunately, many employees are chronically dehydrated because they don’t have access to tasty beverages at work. This doesn’t necessarily mean you have to install a soda machine in the breakroom. Giving workers unlimited access to sugary drinks could backfire in the long run by contributing to illnesses and increased sick days.
Instead of offering sugary beverages (that can actually contribute to dehydration in the long run), make it easier for your employees to stay hydrated with pure water. Providing a filtered office drinking water system is one of the best ways to encourage optimal hydration. Most employees will appreciate the clean, tasty alternative to standard office tap water.
Comfy Seating
When was the last time you took a look at the seating arrangements in your breakroom? If it’s been a while, take a walk over there and give it a good look. Is there sufficient space for multiple employees to sit at the same time? Are the seats comfortable and rearrangeable so employees can interact with others or achieve greater privacy as desired? If not, you might benefit from a breakroom seating reset.
Seating arrangements in breakrooms should be both comfortable and flexible. You might want to bring in some modular furniture because it’s easy to move and rearrange as needed. For maximum versatility, seating arrangements should include a mix of traditional breakroom chairs and tables, lounge chairs, and even bean bags. Making the space as open as possible will also help it look more roomy and inviting.
Nutritious Snack Options
Most employers don’t provide full meals for their employees. It’s perfectly reasonable to expect workers to make their own lunch or dinner arrangements. However, if you want to support your employees’ energy levels, keep healthy snacks in your breakroom. Nutritious snacks can enhance employee performance throughout the day, so workers find it easier to get more done.
Instead of investing in chips, candy bars, and other sugary sweets, opt for snack options that won’t cause sugar spikes and inevitable crashes. Some great options include trail mixes, protein bars, fresh fruit, popcorn, and veggie trays. Instant oatmeal cups can also be a convenient source of energy for those who don’t have time to grab breakfast before heading to work. You might want to send out an employee survey to see what types of healthy snacks your workers prefer.
Optimal Lighting
Did you know that poor lighting can negatively impact your employees’ psychological and emotional well-being? Improving workplace lighting (including in the breakroom) can make a huge difference in worker morale and energy levels. Warm white light may be a great choice for the breakroom because it creates a soothing, calm atmosphere. Cool white light might be a better fit for conference rooms and cubicle areas because it enhances focus and energy.
Of course, natural light is arguably the best option for the office whenever it’s available. If your breakroom has windows, try to keep the shades open during working hours. That way, employees can experience the mood- and health-boosting benefits of natural light exposure.
Entertainment Options
Some office managers and CEOs mistakenly think that a breakroom should be boring to serve its purpose well. However, the terms “boring” and “relaxing” are not synonymous. Employees may find a boring breakroom to be surprisingly non-restorative. On the flip side, a room equipped for entertainment can be very relaxing and rejuvenating.
To make your breakroom a more enjoyable place to spend time, you might want to install a corner television. That way, workers can watch their favorite sitcom while they relax. You might also keep a few card or board games stocked in a cupboard for employees who prefer to interact in fun ways during their lunch breaks.
Reset Your Breakroom Today
Your employee breakroom can reveal a lot about your overall workplace environment. If it’s not lit well, or if it’s boring and unwelcoming, workers are more likely to feel underappreciated and discontented. The good news is that you don’t have to sink a lot of money or effort into resetting your breakroom and getting a fresh start. Use these simple tips to revamp your breakroom and make it a place where workers can go to feel truly cared for and relaxed.
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