The real estate industry has grown a lot in the recent past. A lot of people are seeking to buy or sell their houses. When an individual buys an apartment for commercial use, they might be required to redevelop it. Some of these buildings might not be in good condition to last for years. According to Steven Taylor Taylor Equities, most landlords choose to repair or redevelop the apartments.
In this article, we’ll outline the advantages of redeveloping over repairing an apartment.
The main reason why people chose to redevelop apartments is to make them stronger. After 10 to 20 years following the construction of a building, it becomes weak. The steel used inside the beams has already corroded to an extend where the building might not survive for long. When making repairs, it is impossible to reach such metals. However, during a redevelopment, the construction company would demolish the existing building and construct a new one. This means that they will use new materials that will last long. The landlord will thus enjoy the benefits associated with the new building for a long period. Such would not have been the case if the building was only repaired. Steven Taylor Taylor Equities points out that people buy a commercial building to maximize long term profitability. This would not be possible when working with a repaired building.
Typically, repairing a building is cheaper as compared to the whole cost of redeveloping an apartment. However, if a landlord has long-term goals, the best option would be redevelopment. The old buildings were constructed using what might be termed as “outdated construction norms.” Such buildings might not be in a position to withstand new weather and climatic changes. As a result, the landlord risks residents’ lives through the possibility of roofs sinking or being blown away by the wind. Redevelopment ensures the building is constructed according to modern regulations, making it withstand adverse weather conditions. The builder can have additional amenities such as swimming pools and gyms for the new apartment.
Repairing an apartment can increase its lifespan by approximately five years. Once the five years are over, the landlord might be required to repair the building again. However, redevelopment requires a one-time cost, and the building would last for more than 10 years without requiring any repairs. Redevelopment is often recommended for apartments that are more than 15 years old. In repairs, one will have to spend money. However, during a redevelopment, the developer can get funds and an additional area.
Before an individual chooses to become a landlord, they ought to be prepared for the various challenges they might face while managing a building. If strategic planning is not done regarding repair or redevelopment, the landlord might end up making huge losses. This is not something that landlords want, and therefore, they always choose to repair or redevelop the building based on their best interests. Redevelopment has become the current trend of making old buildings look new again.