It takes a savvy investor to purchase and manage residential properties. Some landlords become so frustrated that they abandon properties that don’t generate sufficient income. In other cases, landlords only minimally maintain their properties, leading to an appearance of neglect. Potential investors generally avoid such properties because of the cost and potential danger involved in restoring properties to habitable condition.
Under Paul Kerley’s leadership, Commercial Property Resources, Inc., purchased a run-down apartment complex in Salem, Oregon in 2007, and immediately began renovating it. Kerley renamed the complex Albany Meadows. He then sent in a small army of workers to start the renovation process.
Renovations were thorough, including insulation throughout, energy-efficient double-pane windows, new roof vents and sliding patio doors, bathroom ventilation fans, and more. All apartments were inspected for dry rot and other health issues, after which they were given a fresh coat of paint. Most of the stoves and refrigerators were replaced with new appliances, and units that included washers and dryers had them replaced. In all, Kerley planned to spend about $1.5 million on the renovations.
A complex-wide security system was installed; in addition, residents can watch the video feeds on their own computers. Even before renovations were completed, they had a significant impact on security in the area, with police reporting that calls for assistance had dropped by more than half.