Asphalt Paving, Property Management & ROI
Being a successful property manager requires versatility. You need interpersonal skills, a solid grasp of accounting principles and the ability to switch priorities in the blink of an eye. You may be able to delegate some tasks to staff members, but in the end, you are the one who will be held responsible for retaining good tenants, filling vacancies quickly, keeping the property maintained and enhancing the property’s bottom line. Some property managers believe that if the interior spaces are attractive and properly maintained, tenants will continue to renew their leases and any vacancies will be easy to fill. However, if your parking lot and sidewalks are in poor shape, you could find yourself losing quality tenants and failing to get potential tenants to even look at the interior.
Asphalt Paving, Property Management & ROI – Retaining Good Tenants
Tenants want to feel that your pavement does not pose any safety issues for their visitors, employees or customers. Uneven pavement, potholes and cracks can damage vehicles and cause pedestrians to trip. If a tenant’s customer steps into a pothole and sprains an ankle or the tenant’s vehicle is damaged, your tenant is likely to blame you for the accident and explore other options.
Asphalt Paving, Property Management & ROI – Appealing to New Tenants
Although curb appeal matters to current tenants, it is especially important when you are trying to attract new ones. If potential tenants drive by your property and see a ragged, neglected parking lot, they may assume that the rest of the property is in equally poor condition and just keep driving. On the other hand, if they see an attractive parking lot, they are likely to feel that you will be someone who will ensure that any issues that might arise will be handled in a professional manner.
Asphalt Paving, Property Management & ROI – Increasing Profitability
Owners and shareholders like to see an acceptable return on their investments. New pavements are normally capitalized, meaning that a portion of the cost is expensed over the expected life of the investment. If the asset does not achieve its expected life, you may have to absorb a significant expense in a single year. To illustrate, suppose you install a parking lot at a cost of $200,000 and expect it to last for 20 years. You record an asset of $200,000 on your balance sheet. Each year, you expense $10,000 of the total cost of the parking lot. After 20 years, the entire cost of the parking lot will have been expensed. However, if the pavement has to be replaced in just 10 years, you will be facing an expense entry of $100,000 in the asset’s final year.
Pavement can impact profitability in other ways as well. If someone is injured or suffers vehicle damage due to your neglected pavement, you could be held liable. If you have a high turnover of tenants, you could be spending more to advertise vacancies. If your tenants are losing business due to your poorly maintained parking lot, they may be unwilling to renew their leases without financial concessions.
Let Dirtworks Help You Maximize Your ROI
Dirtworks is a full-service asphalt paving company serving the greater Cape Cod area. We offer a full line of asphalt maintenance, repair and construction as well as site work and excavations. Whether you need a road built, a parking lot sealcoated, a septic tank installed or a building site graded, we can help. Our services include crack repairs, asphalt milling and reclamation, asphalt paving, overlays and pavement markings. Dirtworks has been paving asphalt in Cape Cod for over 20 years and we have the experience, equipment and knowledge to deliver exceptional results at competitive prices. If you have questions about Asphalt Paving, Property Management & ROI, or would like a free quote, submit our online form or call (508) 240-5541.
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