Apartment living is suddenly back in vogue. Actually
it never went out of style. It just changed and evolved along with changing
mores and lifestyles and current economic trends. Apartment living, just like
city living, is now back in fashion among millennials. I addressed that a while
ago in Where Have All the Hippies Gone.
Major, mid-sized and even smaller cities are now
being peppered with apartment projects where once condos held supreme. San Francisco
seems to be leading the charge with its infusion of the ‘creative class’ and
escapees from Silicon Valley.
Even though apartment living ebbed and flowed with
evolving lifestyle choices and tastes, it has always been part of the American
lexicon ever since its inception before the 1700s. Actually even before that period
in American history with the pueblos of the southwest and Mayan cities further
down south.
It’s no different around the world. Until recently
in Europe, apartment living had been the norm for centuries. Multiple
generations often lived in the same building. When I was hanging around
Amsterdam in the mid-60’s, my good friend lived with his parents and girlfriend
in first floor apartment, his grandparents occupied the second floor and an
aunt and uncle were on the third floor. Europe,the Second Harvest.
For the most part, America had been a country of apartment dwellers up until the end of World War II. In her book entitled: Ranches, Rowhouses and Railroad Flats, author Christine Hunter chronicled the evolution of various American housing forms and the ways they shaped and limited the neighborhoods surrounding them.
For almost sixty years, home ownership was the
zenith of success that many families strived to achieve. Burning their mortgage
papers after the last final payment became a ritual that many of our parents and
grandparents enjoyed.
But the recession of 2008 and a different attitude
among millennials changed the perception of home ownership and shifted desires
toward more freedom of movement, downtown living and less perceived value in
home ownership.
Like most cyclical trends, apartment ownership has
grown and, in turn, waned over the decades. There was a period in the early
80’s when apartment buildings in the Twin Cities were appreciating at a very
fast rate. Then tax changes by the Regan Administration eliminated many tax exemptions
and other lucrative benefits of investment properties. Values plummeted and
real estate was no longer an easy foolproof way to make money.
Yet the basics of apartment management never
changed. Aside from the financial matters, managing apartment units is
observing another person’s life under the microscope. It’s like studying the
socio-economic behavior of subjects who pay you for your efforts. You can’t
help but notice their living conditions, eating habits, mating habits and
general lifestyle.
For an introvert thrust into the lives of a lot of
other people, there seemed to be just one business model that would work. It
was driven by one simple philosophy. That was the idea that the owner of the
building was not dealing with rental property or investment property or
apartments for that matter. To my way of thinking, the obligation of a landlord
became one of providing safe and clean homes for the residents. Semantics
aside, it was an important differentiation. In the same light, it meant categorizing the
folks living in those units as residents and not renters or tenants.
But business is still business. Both parties
understood their respective responsibilities. The landlord-renter agreement
wasn’t a benevolent relationship. Residents paid the landlord for a place to
live. The landlord’s part of the bargain was to provide a safe and clean living
environment. He wasn’t their boss but he wasn’t their pal either. Hopefully
they saw him as a nice guy who was fair but firm and one who responded quickly
to their relevant concerns.
A landlord or manager gets to see other sides of
your resident’s personalities, life styles, love lives and grooming habits that
few other people see.
I was in the business for almost thirty years. Over
that period of time and because of the transient nature of young folks, I dealt
with more than several hundred renters. Ninety-eight percent of them were
fantastic folks whom I’d rent to again in a heartbeat. In fact, there are
several that still exchange Christmas cards with us each year.
Some still stand out in my mind.
The fellow who came and stayed for over 16 years. At
first glance, his unit seemed to embody the perfect definition of squalor. In
fact, it was just dusty and cluttered. He had black garbage bags in every
corner where he collected tin cans, paper, etc. Yet there was never any sign of
rodents or bugs. His dirty dishes piled up until they filled the kitchen sink
and only then were cleaned up. How he could live like that I’ll never know. But
he did. He never caused any problem and always paid his rent on time
.
There was a wonderful couple who stayed for a few
years, left for California only to return shortly afterwards. They were true
urban pioneers. They didn’t own a car and their only means of transportation
were their two bicycles. Yet they managed to get about the city in winter and
summer on their trusty metal steeds.
A middle-aged woman moved in, got married several
years later and stayed for over twenty years. She was an artist, her husband an
attorney and she always had two dogs in her unit which she took for long walks
even in the dead of winter.
Some of the young women needed a father figure to
help them figure out how to operate their oven or change a light bulb. Others
were neat freaks who cleaned the front lobby for something to do.
One mother and her daughter took over the yard work
for a couple of years just to stay busy.
Many couples stayed for just one year and then moved
on. I came to realize it was the transient nature of young people to never stay
in one place for too long a period of time.
There were a few bad apples among the peck. But they
were few and far between and always left after their lease ran out. We were
both happy to see them go.
I could write a book about my experiences. In fact,
I am working on what will probably become a Kindle Single about managing
apartments. It’s tentatively entitled: ‘A Quick Start
Guide to Practical Property Management.’
What I learned over the years can be reduced to one
simple sentence. ‘Treat your residents and their units with respect and not as
rental property.’ If you do that, 98% of your folks will respond in kind.
It was a philosophy that served me well.