From mid-year 2022 through mid-year 2023, per Yardi Matrix’s 2024 Multifamily Outlook, multifamily operating expenses increased by 9.30%. Talk about inflation! Incredible. The article cites the current cost of insurance as the most notable expense but increases in labor, marketing, turnovers and repairs/maintenance also had an impact on the bottom line. Exacerbating an already significant challenge is the fact that in many markets rents have topped out and occupancy is declining. Concessions are also at the fore in many of these same markets. Owning, managing and operating multifamily properties is never easy. It is, however, somewhat less challenging in the landlord’s market many geographies enjoyed over the past several years. Now, with a conversion to a renter’s market in many places, owning and operating an apartment property has become far more daunting.   

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.