Optimizing versus maximizing

A client of mine went with three larger apartments instead of four smaller ones when she renovated a nice building she purchased last summer.

Now why did she do that?

For a number of reasons:

-to reduce the level of complexity in terms of her property management

-to keep the number of leases she has to contend with lower

-to reduce churn in her tenant base

-to increase her rents for each unit and presumably get better tenants as well

-to reduce her maintenance and repairs, wear and tear

-to do less renovation/construction work for only slightly less income

This is a reminder that it’s not always about maximizing—it’s about optimizing your portfolio.

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Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD, Ottawa Senators founder, Real Estate Investment and Business coach, ROYAL LePAGE Performance Realty broker,  1-613-762-8884 bruce.firestone@century21.ca twitter.com/ProfBruce profbruce.tumblr.com/archive brucemfirestone.com

MAKING IMPOSSIBLE POSSIBLE