A property lease–up refers to the time between the announced launch of a new apartment community and six to 12 months after opening. At the end of a successful lease–up, occupancy should be in the mid to high 90s and residents should be paying rent rates at or above average market rate.
Explore further detail here. People also ask, what is lease up risk?
Leasing risk: In an asset where current vacancy exists that the sponsor expects to lease up over time, there is risk that the lease up may not occur or may occur at a slower rate than the sponsor anticipates.
Secondly, how do you market a lease? 7 Keys to an Apartment Lease Up Marketing Plan
Consequently, what is a lease up schedule?
What is the lease rate?
What is Lease Rate. The lease rate is the amount of money paid over a specified time period for the rental of an asset, such as real property or an automobile.
What is lease up fee?
Lease–Up Costs means collectively, all locator fees, finder’s fees, referral fees and other leasing commissions and all tenant allowances and concessions applicable to the Leases.
What is development risk?
Very simply, a risk is a potential problem. It’s an activity or event that may compromise the success of a software development project. Risk is the possibility of suffering loss, and total risk exposure to a specific project will account for both the probability and the size of the potential loss.
What is a lease up reserve?
Lease–up reserve. A cash deposit which is available to a property to help pay operating costs and debt service at the initiation of operations while units are being leased to their initial occupants.
What is Entitlement risk?
Entitlement risk is the risk that the various government agencies with jurisdiction will not issue the required approvals for the construction project to proceed. A Condo Map, a Tentative Map, a Condo Declaration, and a Subdivision Map all mean the same thing when you are talking about a condo conversion project.
What are some of the types of risk that should be considered when analyzing real estate?
- General Market Risk.
- Asset-Level Risk.
- Idiosyncratic Risk.
- Liquidity Risk.
- Credit Risk.
- Replacement cost risk.
- Structural Risk.
- Leverage Risk.
What is a stabilized property?
Definition of Stabilized Property. Stabilized Property means a completed Property that has at any time achieved an Occupancy Rate of at least 80%.
What is the risk of real estate?
Liquidity risk, market risk, and interest rate risk are just some of the factors that can influence the gain or loss that is passed on to the investor. Liquidity and market risk will tend to have a greater effect on funds that are more growth-oriented, as the sale of appreciated properties depends upon market demand.
How do you make a marketing plan for an apartment?
- Market research. Market research serves as the backbone of your marketing plan.
- Target market.
- Competitive analysis.