Ranches, Rowhouses, and Railroad Flats

Apartment living is back in vogue now. 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 especially in fashion among millennials. Of course, it doesn’t help that the starting price for a starter home now hovers between $400,000 to $500,000 in many parts of the country.

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 a part of the American lexicon ever since its inception before the 1700s. Actually, it was 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.

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.

After World War Two and 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 apprecia-ting 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 a foolproof way to make money.

Yet the basics of apartment management never changed. In fact, I even wrote a book about just that fact. Aside from the financial matters, managing apartment units really boils down to 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 like myself, thrust into the lives of other people, there seemed to be just one business model that would work. It was driven by one simple philosophy. 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 is one of providing safe and clean homes for the residents. Semantics aside, it was an important differentiation.  In the same light, it meant thinking of the folks living in those units as residents instead of 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.

I was in the rental business for more than 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.

                                    

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.

While I’ve moved on with my life, that philosophy has served me well in a myriad of other exchanges with my readers, business clients, friends, associates and family. They are simply good words to live by.