Watching and Tracking as Both an Owner and Investor
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key takeaway offered in last month’s article on “Ways to Cope with No Clear Direction” (Apartment News, September 2020) was the importance of watching and tracking. Owners, for the most part, tend to know the cash flow generated by their properties. However, just looking at the monthly totals is only part of the picture. What lies behind the totals and how those numbers are trending may be more critical.
A true understanding of what is happening and the ability to make changes that might improve future outcomes requires digging into the details, both in terms of rents collected and expenses. A reduction in cash flow may not just be the result of delinquent rents; it may be a combination of several different factors from both sides of the equation. At the same time, owners also need to put on their investor hats and look at the real estate market. Now the focus is
BY SONYA LOERA
upon ROI (Return on Investment), which involves knowing the current market value of each property owned. Some might say, “Why bother? I’ve owned this property for 20 years and I don’t plan on selling.” That may be true, but what if something happens and there is a change in personal circumstances? Someone who has been watching and tracking the market on an ongoing Watching — continued on page 24
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