Maria owns a multi-unit residential building in Montreal. Her primary goal for the property is to maximize its long-term market value for a future sale in 10-15 years, rather than maximizing immediate cash flow. Which of the following strategies should her property manager, Jean-Luc, prioritize?

Question: Maria owns a multi-unit residential building in Montreal. Her primary goal for the property is to maximize its long-term market value for a future sale in 10-15 years, rather than maximizing immediate cash flow. Which of the following strategies should her property manager, Jean-Luc, prioritize?

Answer options: ✅ Implementing a preventative maintenance program and planning for significant capital improvements.

• Aggressively raising rents annually to the maximum allowable, even if it increases tenant turnover.
• Minimizing all maintenance expenditures to boost net operating income in the short term.
• Focusing solely on filling vacancies as quickly as possible, regardless of tenant quality or lease terms.

Correct answer: Implementing a preventative maintenance program and planning for significant capital improvements.

Explanation: To maximize long-term market value, a property manager should prioritize maintaining the physical condition of the property and its appeal through preventative maintenance and strategic capital improvements, rather than short-sighted cash flow maximization. This directly supports the owner's stated long-term goal.