Do you know the difference between a Class A, B, C, or D apartment?

Do you know the difference between a Class A, B, C, or D apartment?

Class A properties are luxury units. They are usually less than 10 years old and rented by white collar workers. Average rents are high, and they are generally in the most desirable geographic areas and neighborhoods, have many amenities, and are often gated.

Class B properties are typically 10 to 25 years old, and may have been class A when they were built. They usually are well maintained and have a middle class tenant base of both white and blue-collar workers. Most are renters by choice.

Class C properties were generally built more than 25 years ago and have blue-collar and low- to moderate-income tenants, and the rents are below market. Many tenants are renters "for life". On the other hand, some of their tenants are just starting out and are likely to work their way up the rental scale as their income rises. They may have deferred maintenance and few amenities.

Class D properties house many government-subsidized tenants, including Section 8. They are generally located in lower socioeconomic areas and often have significant deferred maintenance.

So next time you're driving through different neighborhoods, you can impress your friends with your knowledge about the different classes of apartments!