Apartment Building Rehab

[Damien Hall]

Has anyone ever rehabbed an apartment building? I located a 20+ unit in need of a rehab and wanted to know what to expect. What are some things I should be aware of? Is the process that different from rehabbing a single family home?

[Account Closed]

Damien,

The most important steps to take early are to develop a good relationship with the building code enforcement office. They are very strict when it comes to any kind of commercial construction or rehab.

The other thing to do really early is get the fire marshal in to walk the property as soon as possible. Complying with the fire codes is not all that expensive if you get them involved early.

Another is don't let your contract quote time and materials by unit. There are economies of scale that should work in your favor. The materials to rehab 20 units individually will be higher (sometimes 15% or more) than the cost of enough materials to cover them all at once. A lot of builders count on apartment owners not keeping tabs on the left over materials between units.

If you are also managing the project, get the in the habit early of walking the site with the contractor's project manager every working day. Yes, that means if they are working on Saturday, you walk it that day too. This is the best way to head off problems when they are small, easy to fix and the least costly.

Good luck and keep us informed of the progress!