Why Responsible Property Managers Invest in Capital Improvements

Paul Salib received his master’s in real estate finance and investment from New York University (NYU). He holds an assistant adjunct professorial position at the New York University School of Professional Studies Schack Institute of Real Estate. Concurrently, Paul Salib serves as the managing partner of Castellan Real Estate Partners, a New York-based real estate investment firm he founded in 2009. With Mr. Salib at the helm, Castellan practices responsible property management. 

The first rule of responsible property management Castellon follows is to put tenant needs first. Acting responsibly as a property manager involves investing considerable capital into property-wide renovations and enhancements. Examples of capital improvements include new windows, boiler replacements, natural gas conversions, modern intercom systems, closed-circuit television (CCTV), and any other physical building upgrades that will improve the tenant's experience and increase a property's value and/or usability. 

Capital investments such as these often require significant outlays, but their effects eventually return to the business’ bottom line over time. Well maintained buildings ultimately require less money spent on maintenance, and are much more likely to appreciate in value in a rising real estate market.