Balcony Dilemma

[Nir]

Hi All,



A building inspector determined that a 2nd floor balcony of an old Plex is unsafe and

it is mandatory that either a repair or a removal of the balcony be completed.



Would you prefer to repair or remove the balcony assuming the same cost of say $2,000 for each option?



In other words, is an old Plex's balcony more of a liability than a nice feature to attract tenants or vise versa?



Same question assuming the cost to repair was double that of removing the balcony.



THANKS.

 

[Mike Milovick]

Personally, I think its a trade off.



Balcony helps from a rentability perspective. On the flip side, balcony can fester unwanted liability/safety issues - like people/children falling off balconies, balconies collapsing and tenants putting barbecues on balconies.



If it was me, I would look closely at your rental market. If its tight, I would lose the balcony (assuming existing tenant isn't going to slap you with a rent abatement application). If its a market exhibiting high vacancy, I would maintain it.

 

[invst4profit]

I would prefer to remove it however since you are in Ontario your tenant can demand you repair it. If you are taken to the board you will be required to repair rather than remove.

You should discuss the matter with your tenant first if your preference is to remove.

 

[Nir]

Thanks Mike and Greg!

 

[brentdavies]

Think carefully before you remove the balcony. It may impact the resale price of the property.

In rare cases, where the property owner does not have the funds to properly repair the decks, we have removed the decks as a temporary measure. Then you must put up a guard rail on the door that allows access to the now removed deck. And it has inpacted the resale value of the property. Just finished one of my multifamily properties, at a great price of $1770 per deck with a great new membrance on the deck and new handrails that meet the new code requirements.



Rental rates are not really affected by a balcony in Edmonton. Balconies are a plus. Useage depends on the weather and insects, and in Edmonton, the 2 greatly affect the use of the decks. Other than storage of bikes.



Every city has it own weather. The same thing applies to air conditioning in Edmonton. Not required. Hamilton I understand it is requirement.



Bottom line; I would rebuild the decks to today's standards, ensuring a safe environment for my tenants.

 

[Tony Miller]

I would choose to repair the balcony simply because I think it is something that some prospective tenants would like (BBQ if it allowed and storage or just a place to sit down). It could increase the curb appeal of the property and I assume that some of the cost to repair the balcony can be claimed come tax time.

 

[invst4profit]

How much is the rent on the apartment. That should be the determining factor.

If it's a old plex in not so great a part of town with a client base of lower income I would get rid of it if I could get it past the tenant.

In that situation it would add no value to the unit and is simply a liability.

Surly you could remove it for less than repairing.

 

[Brigham]

I n such situation , its more important to compare the usage of the balcony , is it necessary or not.. If it is located in such area where it may useful and liked then the repair will be good options.If it does not effect the rent and other dangers then the removal and saving will be better.

 

[bizaro86]

Is your plex in an area where condo conversion is possible/potentially desirable? If so I would personally keep it, as a balconey would make a big difference to the resale price of the unit in that situation. It always makes sense to consider your exit strategy...



Regards,



Michael

 

[fumbrunner]

Does it serve as a means of egress? If so, it may be worthwhile to repair it.

 

[Thomas Beyer]

[quote user=investmart]Would you prefer to repair or remove the balcony assuming the same cost of say $2,000 for each option?


Keep it / fix it .. it is a benefit to tenants and property value (both financial and esthetics)