Paul Kerley, the owner and president of Commercial Property Resources, Inc., in Salem, Oregon, has more than 30 years of experience in commercial and residential real estate. Currently owning and managing through his firm more than 1,000 units, Paul Kerley tends to buy B and C class properties in the Salem, Oregon, region.
How a property is classified depends on its location, its physical characteristics, and its potential among renters. Three main classifications exist: class A, class B, and class C.
Class A properties are typically less than 15 years old. They are quality buildings that include all the latest amenities. Vacancies and major maintenance issues are uncommon, and rents are often high. Tenants who occupy class A units tend to have high incomes, as well.
Class B properties are also in good shape but are usually a bit older. These types of units may need renovations or maintenance work from time to time, and rents are lower.
Class C buildings often require the most work from homeowners and property managers. At more than 20 years old, these properties may be due for major renovations and aesthetic updates. Depending on the area, it can take a bit of time to find renters for these types of units.
