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V O L . X X V N O. X V J U LY 2 2 , 2 0 1 9 18 R E A L E S TAT E / C O N S T R U C T I O N / D E S I G N the properties early, we can justify market-rate rentals, improve vacancies and delinquencies, benefit from efficiencies and also command a higher sale price when the time comes to divest of a property." Risk for renters? Existing tenants are occasionally displaced as new landlords perform upgrades and raise rents. "It's hugely problematic," says Avesta Housing President and CEO Dana Totman. "Sometimes we forget who traditionally lives in rental housing. It tends to be low-income people. e average income of renters in rental households in Portland is $33,000. ey can afford $841 per month for rent. So every time prices go higher, whether it's fixing up an existing apartment and pricing it higher or building new hous- ing, which is incredibly expensive due to construction costs, it just never quite matches up very well with what the traditional rental household can afford." "Any time there's a shortage of housing, it puts pres- sure on low-income residents because values start to go up," says Vitalius. "e flip side is, dilapidated housing is not good housing; it's not safe and it's not healthy. So Maine's housing stock, which is mostly 100 years old, is getting a much overdue improvement and has been for the last 10 years." L a u r i e S c h r e i b e r , M a i n e b i z s e n i o r w r i t e r , c a n b e r e a c h e d a t l s c h r e i b e r @ m a i n e b i z . b i z Commercial & Residential Flooring Solutions. PORTLAND SHOWROOM 50 ALLEN AVE., PORTLAND, ME 04103 (207) 797-4657 PAULWHITECOMPANY.COM Unum office remodel » C O N T I N U E D F RO M P R E V I O U S PA G E F O C U S The average income of renters in rental households in Portland is $33,000. They can afford $841 per month for rent. So every time prices go higher … it just never quite matches up very well with what the traditional rental household can afford. — Dana Totman Avesta Housing Advice to young investors E d Herczeg recommends that novice investors, looking to get into the multi-residential rental market, buy a smaller multi-unit and, if she's handy, spruce it up — clean up the yard, paint, perform minor upgrades — and live in one of the units. "By doing so, you're allowing the other two or three tenants to pretty much pay your living costs," he says. "You live rent-free and, in four or five years, your principal has dropped and you can buy another multi-family." INCOME AND RENT IN PORTLAND Maine minimum wage salary Portland renter average income Affordable yearly rent for average Portland renter ($841/month) Potential yearly rent of renovated unit ($1,400/month) $22,880 $10,092 $16,800 $33,000 S O U R C E S : Bureau of Labor Statistics; Avesta Housing

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