By Adina Rogoz
As cities grow and evolve, so do challenges such as rising land costs, environmental concerns and the pressure to meet modern lifestyle needs. For real estate executives, these problems come down to one key question: Should you build from the ground up or revamp existing structures?
Building new brings the freedom of starting fresh and the ability to incorporate cutting-edge designs and meet the latest energy efficiency standards. However, it often comes with higher initial costs and longer timelines. Meanwhile, revamping existing properties can preserve historical charm, reduce waste and minimize disruptions to established communities—but it also means navigating the complexities of outdated infrastructure.
To unpack this complex topic, we reached out to Nick Sinatra, founder & CEO of Sinatra & Co. Real Estate, which owns and manages more than $700 million in real estate assets, including 5,000 multifamily units, most of which are located in the Northeast. Although the company focuses on acquisitions in core-plus markets, as well as residential development and management, it also invests heavily in urban infill and adaptive reuse projects.
What are the top factors that developers consider when deciding between building new or revamping an existing property?
Sinatra: It always comes down to the return on investment analysis. Then there’s capability—some firms don’t have the experience or stomach for an adaptive reuse. Putting a structure up based on a set of drawings is straightforward. Tearing into existing walls and building systems can be very challenging and provide many surprises. Additionally, most construction professionals can predict with a good degree of certainty how long a new build will take in a given market/location. That’s not always possible for renovations.
How does the timeline for revamping a building compare to a new build?
Sinatra: It really all depends. Sometimes renovations could be faster since you have walls, foundations, roofs etc., already in place. Sometimes there can be huge problems or unforeseen delays that take much longer than a new build. We typically build multifamily and mixed-use structures in 12 to 14 months—in addition to the entitlement timeframe.
What are the primary challenges associated with renovating an old building?
Sinatra: Surprises. When building new, an architect has a set of plans and the development team can go build it. With adaptive reuse, there can be unknown and unwanted problems behind walls and with other elements of the job that create unforeseen headaches—and costs.
In many cases, you cannot know for certain where items are located and what condition they are in until you physically get into the structure and, even then, something could be one way on a floor and then very different on another floor that was built years later or changed without plans or approvals years ago. Change orders tend to be more frequent with renovations versus new builds, especially with an inexperienced team.
What are the advantages of repurposing older buildings for modern use?
Sinatra: One of the advantages is marketability. Customers love the uniqueness and history that can sometimes be unlocked and celebrated when repurposing older, historic structures. Another advantage is community accolades. Most communities welcome the restoration and enhancement of noteworthy historic buildings versus knocking down and building new.
Lastly, uncovering, restoring and celebrating the craftsmanship of yesteryear. Many times, older structures were built with materials and techniques that would be cost-prohibitive in new construction. For example, we restored an office building in Buffalo, N.Y., that was completed in the late 1890s where the terrazzo floors were individually hand-installed one-inch tiles—they now look as beautiful as they did more than 125 years ago.
Tell us more about how Buffalo’s former Women and Children’s Hospital became Barton Apartments.
Sinatra: Developing buildings in Buffalo, one of our strengths is historic preservation. The conversion of the former Women and Children’s Hospital was certainly unique given the fact that it was a hospital—something we don’t typically associate with the word “historic.” When looking at the floorplans, we were able to effectively treat the former examination rooms and offices as essentially a framework for new apartment dwelling units.
The building has some wonderful exterior architectural detailing, but the inside certainly had the look and feel of a former hospital with linoleum flooring, interesting paint colors, etc. We were able to effectively work with the National Park Service to preserve any historic detailing with the plaster work while still modernizing the interior units and create a historic product that would still be attractive to the modern-day tenant base.
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Are there any regions or cities where one approach is more advantageous than the other?
Sinatra: Some cities have been more focused over the last half-century on preventing the demolition of historic structures than others, so there is more supply to work with. For example, Charleston, S.C., has long been renowned for its rigorous preservation efforts, with ordinances dating back to the 1930s to protect its historic downtown. Similarly, cities like Savannah, Ga., have maintained their historic districts through strict zoning laws and the establishment of organizations like the Historic Savannah Foundation.
Another factor is economic incentives. Some cities and states offer economic incentives such as historic renovation tax credits to make the risks associated with the renovation projects more palatable for investment. For instance, Missouri offers a historic preservation tax credit that has spurred the redevelopment of countless buildings in cities like St. Louis and Kansas City, such as the renovation of the historic Union Station Hotel in St. Louis. Similarly, Maryland’s Sustainable Communities Tax Credit has encouraged developers to undertake large-scale projects like the redevelopment of the historic American Brewery building in Baltimore.
How do you expect urban development to evolve over the next decade?
Sinatra: It’s all about infill in the next decade. Land is scarce, and the opportunities will arise in a scattershot approach based on repurposing older buildings that have been vacated or have become inefficient or obsolete—think office to residential or enclosed malls into data centers or mixed-use. I predict more residential for sale and for rent, and more experiential real estate as people are still going to want to be in our urban cores for all the reasons we have wanted to for the past few hundred years.
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Written by Kevin Kiene
A common question from Landlords is, what do I do when Tenants stop paying rent? It’s a frustrating issue for many Landlords and a top concern for investors considering getting started with long-term rentals.
While it’s a common source of angst, the reality is that the right property management systems can dramatically reduce the risk of having Tenants who are behind on rent. Landlords rarely have to deal with Tenants falling behind on rent when they:
- Keep their property in good condition
- Thoroughly screen Tenants and only rent to qualified applicants
- Communicate well with Tenants
- Have clear policies for late rent
That said, sometimes it happens and Landlords need to know what to do when it does. With that in mind, here’s a step-by-step guide for dealing with Tenants who fall behind on rent.
Step 1: Review Your Lease Agreement
Your Lease is crucial when things go wrong. Your Lease Agreement should specify the day rent is due each month. It also may provide a grace period for paying rent. Some states require grace periods, others don’t. Your first step should be checking the Lease to confirm that rent is late.
You should also review your Lease for details about late fees and late fee policies. Before contacting your Tenant, you want to make sure you’re familiar with all Lease terms dealing with late rent.
Step 2: Remind your Tenant That Rent Is Late
Ideally, you use a rent payment system that sends reminders when rent is due and past due. That said, sometimes a Tenant just forgets to pay rent. Start with a friendly reminder to your Tenant that rent is late. This can be as informal as a phone call or text. You can also send a Late Rent Notice.
More often than not, this reminder is all it takes for a Tenant to get current on rent. However, in some cases, there’s a bigger problem and you’ll need to work with Tenants. If this is the case, you want to talk with the Tenant about a plan to get them back on track. It’s important to strike the right tone in this conversation – you want to be firm, professional, and respectful.
Life happens and everyone has seasons where they get behind. If your Tenant is communicating with you, try to work with them to create a plan to get them back on track. This is ideal for both parties.
Step 3: Send a Notice to Pay or Quit
If your Tenant isn’t communicating with you or is unwilling to work with you, send an official Notice to Pay or Quit. The Notice gives the Tenant a set number of days to get current on rent or vacate the property. The period varies from state to state. Use your state-specific form to customize this official notice.
Many Landlords hesitate to take this step, but we’d encourage you to be proactive. It’s a good way to determine whether your Tenant plans to stay in the property or move out. If your Tenant isn’t going to stay, you want to figure this out as soon as possible.
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Step 4: Consider a Cash-for-Keys Agreement
If the Tenant doesn’t pay within the period provided in your Notice to Pay or Quit, you have two options: offer a Cash-for-Keys Agreement or begin the eviction process.
In a cash-for-keys agreement, the Tenant agrees to vacate the property in return for a one-time cash payment. While this might sound counterintuitive to Landlords, it’s cheaper and faster than an eviction and a good last attempt to negotiate with Tenants.
We always encourage Landlords to try a cash-for-keys agreement as a way to minimize move-out costs and time. You want to get a bad Tenant out as soon as possible so that you can get a good Tenant in your property.
Step 5: Start the Eviction Process
If the Tenant doesn’t pay or accept a cash-for-keys agreement, it’s time to start the eviction process. We always encourage Landlords to hire an attorney to handle this.
The eviction process is time-consuming and complex, and it’s essential to do every step following state laws. A local attorney who specializes in evictions will ensure everything is done correctly and that the process goes as smoothly as possible. Plus, it’s one less headache for Landlords to handle.
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Provided by the Fair Housing Institute
As the new year begins, property management professionals have the opportunity to reflect on foundational practices that ensure both compliance and operational excellence. Among these, few aspects are as critical as robust fair housing policies, well-defined procedures, and professional written communication. These elements not only safeguard against legal risks but also foster trust and professionalism in interactions with residents, prospects, and team members. This article explores the essential role of policies and written responses, offering a timely reminder to recalibrate for the year ahead.
The Importance of Fair Housing Policies and Procedures
Fair housing policies and procedures serve as the backbone of any property management operation, regardless of the size of the portfolio. They provide a clear framework for staff to understand their responsibilities and adhere to fair housing laws, ensuring consistent application of these principles across the board. Moreover, well-documented policies act as a vital defense mechanism during fair housing investigations, demonstrating that actions taken were in line with established guidelines.
For property management companies of all sizes, the creation of a basic fair housing policy is non-negotiable. However, it is not enough to simply draft a policy and let it sit idle. These documents must be living resources, regularly reviewed and updated to reflect changes in legislation or operational needs. In addition to a general fair housing policy, companies should implement specific procedures addressing reasonable accommodations and modifications. These procedures must clearly outline the steps for processing requests and define the roles of staff members responsible for decision-making.
To ensure these policies are accessible and actionable, many companies utilize a centralized policy manual. This resource serves as a go-to reference for staff, housing key documents such as fair housing policies, reasonable accommodation procedures, and supporting forms. Regular training sessions are critical to reinforce the importance of these policies and ensure all employees understand their role in maintaining compliance.
The Role of Written Communication in Fair Housing Compliance
In the property management industry, written communication is not merely transactional; it is a direct representation of your company’s brand and commitment to professionalism. Emails, letters, and even social media responses all fall under the umbrella of marketing and must align with fair housing principles. As such, every written response must be crafted carefully to avoid potential issues of discrimination or misrepresentation.
One area where this is particularly critical is in responding to inquiries about unit availability. Consistency in responses is essential to prevent any appearance of favoritism or bias. For example, if two prospects inquire about the same unit, the responses they receive should not differ in ways that could be perceived as discriminatory. All leasing professionals should be equipped with standardized language to address these situations, ensuring a uniform and compliant approach.
Another consideration is the tone and content of written communication with residents. Professionalism must be maintained at all times, even when dealing with difficult or hostile situations. Emails represent an official form of communication, and as such, they should be approached with the understanding that their contents may later be scrutinized in legal or regulatory contexts. It is critical to remain composed, clear, and respectful, avoiding language that could escalate tensions or be misinterpreted.
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Balancing Efficiency and Personalization in Written Responses
While templates and canned responses can improve efficiency, their use must be approached with care. Generic responses may be suitable for common inquiries, but personalized communication is necessary for more nuanced or unique situations. A failure to adapt responses to the context can leave residents or prospects feeling dismissed, potentially damaging the relationship and raising questions about the company’s commitment to fair housing principles.
This is where training becomes invaluable. Staff must be equipped with the knowledge and judgment to discern when a situation requires a tailored response. Ongoing training programs should address not only the technical aspects of fair housing compliance but also the soft skills necessary to bring a human element to written communication. This balance between professionalism and empathy is what distinguishes truly effective property management operations.
Preparing for Success in the Year Ahead
The start of a new year offers the perfect opportunity to review and strengthen your company’s policies and communication practices. Begin by conducting a thorough audit of your fair housing policies and written communication guidelines. Identify any gaps or areas in need of refinement, and make it a priority to address them.
It is equally important to engage your team in this process. Gather feedback from staff on the challenges they face when applying policies or crafting responses, and use this input to inform updates and training programs. Establish a schedule for regular policy reviews and training sessions to ensure these foundational practices remain top of mind throughout the year.
Finally, remember the power of written communication as a tool to build trust and foster positive relationships. By prioritizing consistency, professionalism, and a human touch, your team can set the tone for a successful year while reinforcing the company’s commitment to fair housing compliance and exceptional service.
Conclusion
In the property management industry, success is built on a foundation of strong policies, clear procedures, and professional communication. As the new year begins, take this opportunity to reaffirm your commitment to these principles. By investing time and effort into refining your fair housing policies and enhancing written communication practices, you can navigate the complexities of property management with confidence, fostering trust and compliance in every interaction. Let this year be one of growth, consistency, and renewed dedication to excellence.
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