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Maintenance of Residential Rental Property: An Empirical Analysis

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Author Info
Thomas M. Springer (Department of Finance and Real Estate Florida Atlantic University 777 West Glades Road Boca Raton, Florida 33431)
Neil G. Waller (Department of Finance Clemson University 314 Sirrine Hall Clemson, South Carolina 29634-1323)
Abstract

The maintenance costs of 137 residential rental properties in northwestern South Carolina are analyzed. The results show that maintenance cost per square foot increases with property age, tenant turnover, certain amenities, and for higher-rent properties. Compared to other property types, apartments exhibit higher maintenance costs per square foot with larger complexes showing lower per square foot maintenance costs than smaller complexes. This cost economy suggests added value to rental housing for larger complexes. Owners of multiple properties are found to pay higher maintenance costs. Finally, there is no observed relationship between absentee ownership and the level of property maintenance.

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File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol12n01/v12p089.pdf
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Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

Volume (Year): 12 (1996)
Issue (Month): 1 ()
Pages: 89-100
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Handle: RePEc:jre:issued:v:12:n:1:1996:p:89-100

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Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
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Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
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L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

References listed on IDEAS
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  1. Michael E. Solt & Norman G. Miller, 1985. "Managerial Incentives: Implications for the Financial Performance of Real Estate Investment Trusts," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(4), pages 404-423. [Downloadable!] (restricted)
  2. Arnott, Richard & Davidson, Russell & Pines, David, 1983. "Housing Quality, Maintenance and Rehabilitation," Review of Economic Studies, Blackwell Publishing, vol. 50(3), pages 467-94, July. [Downloadable!] (restricted)
  3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  4. Vorst, A. C. F., 1987. "Optimal housing maintenance under uncertainty," Journal of Urban Economics, Elsevier, vol. 21(2), pages 209-227, March. [Downloadable!] (restricted)
  5. Wang, Ko & Grissom, Terry V. & Webb, James R. & Spellman, Lewis, 1991. "The impact of rental properties on the value of single-family residences," Journal of Urban Economics, Elsevier, vol. 30(2), pages 152-166, September. [Downloadable!] (restricted)
  6. G. Stacy Sirmans & John D. Benjamin, 1991. "Determinants of Market Rent," Journal of Real Estate Research, American Real Estate Society, vol. 6(3), pages 357-380. [Downloadable!]
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