Welcome to our June Newsletter!

June 2024 | FULL Newsletter

The Design With Skill monthly newsletter is in your inbox to share our knowledge and expertise as you get to know us and our work.  

Education: Affordable Condos vs. Rentals

The ongoing discussion around condos versus rentals in affordable housing is crucial for urban planners and developers. Condos provide a pathway to ownership, fostering community stability and long-term investment. However, they often require higher initial costs. Rentals, by contrast, offer affordability and flexibility, making them a more immediate solution for many. Both are essential in creating diverse and inclusive housing markets, catering to different financial capabilities and lifestyle needs.  So what are some things to consider when deciding if your project should be developed as a condominium or rental apartments?

• ·  Market Demand

  • Local demand for ownership vs. rental.

  • Demographics of the area (e.g., young professionals, families, retirees).

• ·  Financing and Investment

  • Access to financing for condos versus rental properties.

  • Expected return on investment and cash flow.

  • Impact of interest rates on buyer financing.

  • Insurance costs 

• Regulatory Environment

  • Zoning laws and building codes.

  • Regulations specific to condos (e.g., condo association rules) vs. rental properties.

  • Permits and approvals process.

• Design and Layout

  • Materials and finishes. 

  • Balconies and outdoor spaces.

  • On-site parking. 

  • Security features and elements.

  • Unit layouts, including bedroom and bathroom counts, and overall area.

  • Sustainability and energy efficient features.

• Construction and Development Costs

  • Differences in construction costs for condos versus rental units.

  • Quality of materials and amenities needed.

• Sales and Marketing

  • Marketing strategy for selling condos vs. renting apartments.

  • Sales cycle duration compared to rental lease-up periods.

• Revenue Models

  • One-time sales revenue (condos) vs. ongoing rental income.

  • Potential for price appreciation (condos) versus rent increases (apartments).

• Maintenance and Management

  • Long-term maintenance responsibilities.

  • Property management needs for rentals versus condo association management.

• Exit Strategy

  • Resale value and marketability of condos.

  • Potential for converting rentals to condos in the future.

• Tax Implications

  • Tax benefits or liabilities specific to selling condos or holding rental properties.

  • Impact on cash flow and profitability.

• Lifestyle and Amenities

  • Expectations of buyers versus renters regarding amenities.

  • Common area features and community offerings.

• Risk Factors

  • Market volatility and economic conditions.

  • Vacancy risks and tenant turnover for rentals.

• Community Impact

  • Long-term impact on the community.

  • Neighborhood integration and appeal.

Shoutout: Cindy, the SUNSHINE of our team!

My name is Cindy, and I'm the friendly face behind our social media presence and the all-things assistant (if that makes sense). I've been a part of the company for about a year and a half. I clicked with the company's principles immediately, and my first meeting with Samantha (our CEO) felt warm and friendly, allowing me to know I was in the right place.

The thing I love most about my role is that it has led me to learn about a world I didn't know before (architecture), one that I find quite fascinating. I've learned how to use new tools and have acquired many valuable skills over my time at Design With Skill.

On a personal note, I live in Argentina with my dog, "Pollito," which means "Chick." I love working out, watching movies, and listening to good music (all things we talk about in our Monday regroups).

I feel fortunate to be a part of this team and to have the opportunity to learn about them every day.

Project Highlight: Pasadena ADU Pilot Program

Over the past three years our team collaborated with the Housing Department in the City of Pasadena on an innovative affordable housing ADU Pilot Program.  We are proud to have been a part of this initiative and enjoyed working with the city, homeowners, designers and contractors to help create these new affordable units.  

The Pasadena Second Unit ADU Loan Program is an affordable housing initiative designed to incentivize homeowners to create affordable rental units on their properties through a low-interest construction loan. This initial pilot round of the program offered homeowners comprehensive assistance for financing, designing, permitting, and constructing a new ADU in the City of Pasadena. Homeowners received financial assistance for building an ADU through new construction, garage conversions, or bringing an existing unpermitted “granny flat” or illegal garage conversion up to code.

We are very proud of the built ADUs and are looking forward to the next round!  
Check out the first of the ADUs:

"Working with Design With Skill was a great experience. Their knowledge and experience contributed tremendously to the success of the ADU Pilot program" -  Randy Mabson, City of Pasadena Housing Coordinator