Two Bedroom Apartments
Two Bedroom Apartments
Crystal Thorne
ECO/365
January 6, 2015
Dominic Minadeo
Abstract
When looking at the two-bedroom rental apartments Goodlife Management looked at the supply and demand of their Atlanta two bedroom rental apartments. Goodlife Management looked at what different factors may have changed the supply and demand of their Atlanta two bedroom rental apartments. Goodlife Management has the monopoly on the apartment in Atlanta because they are the only ones in the city to rent them.
Two Bedroom Apartments
The city of Atlanta is a nice place to live in. The pollution is low and traffic is not bad in most parts of town. If someone wants to go for a walk, go jogging, or even go on a bike ride the well-maintained sidewalks are just what someone needs. With the crime rate being low is also a plus to add why this is a good place to rent a two-bedroom apartment. . Goodlife Management looked at what different factors that may have changed the supply and demand of their Atlanta two bedroom rental apartments.
Hal Morgan the Regional Property Manager for Goodlife Management is going to look at what needs to be done about the current vacancy rate on the temporary month-to month lease. Now he is looking at getting the vacancy rate down from 28 percent to 15 percent. He is also looking at if he can do this and maximize revenue. Hal did lower the vacancy rate to 15 percent and the rental rate as well, and found out that it did not maximize revenue. With this, he seen that the rent would be $1050 it would fill 1700 out of the 2000 apartments and the revenue in a year would be 1.79 million.
Now Hall Morgan is looking at renting out all the two bedroom apartments. He needs to see if he can rent them out at the current rent of $1100 so he can keep maintenances cost covered. He found out that he would have to raise the rent to $1550 a month to rent out all the apartments so he could cover the cost of the maintenances cost. The supply curve is therefore upward
Crystal Thorne
ECO/365
January 6, 2015
Dominic Minadeo
Abstract
When looking at the two-bedroom rental apartments Goodlife Management looked at the supply and demand of their Atlanta two bedroom rental apartments. Goodlife Management looked at what different factors may have changed the supply and demand of their Atlanta two bedroom rental apartments. Goodlife Management has the monopoly on the apartment in Atlanta because they are the only ones in the city to rent them.
Two Bedroom Apartments
The city of Atlanta is a nice place to live in. The pollution is low and traffic is not bad in most parts of town. If someone wants to go for a walk, go jogging, or even go on a bike ride the well-maintained sidewalks are just what someone needs. With the crime rate being low is also a plus to add why this is a good place to rent a two-bedroom apartment. . Goodlife Management looked at what different factors that may have changed the supply and demand of their Atlanta two bedroom rental apartments.
Hal Morgan the Regional Property Manager for Goodlife Management is going to look at what needs to be done about the current vacancy rate on the temporary month-to month lease. Now he is looking at getting the vacancy rate down from 28 percent to 15 percent. He is also looking at if he can do this and maximize revenue. Hal did lower the vacancy rate to 15 percent and the rental rate as well, and found out that it did not maximize revenue. With this, he seen that the rent would be $1050 it would fill 1700 out of the 2000 apartments and the revenue in a year would be 1.79 million.
Now Hall Morgan is looking at renting out all the two bedroom apartments. He needs to see if he can rent them out at the current rent of $1100 so he can keep maintenances cost covered. He found out that he would have to raise the rent to $1550 a month to rent out all the apartments so he could cover the cost of the maintenances cost. The supply curve is therefore upward
References: Phoenix, U. o. (2014). Supply and Demand Simulation.