Roof Replacement for an Apartment Building: Inspection, Bids and Budget
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The roof protects every unit below it. When it leaks, the damage spreads to ceilings, insulation, walls and the units under the leak, and the repair cost grows. A roof replacement is one of the largest and least frequent capital items in an apartment building, so a sponsor should know its age and condition before the price is set.
This guide explains how to inspect the roof, how contractors price it and how to plan the cost in the budget.
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What are the common roof types?
- Asphalt shingles on sloped roofs. Common on smaller buildings and some garden-style properties.
- Single-ply membranes such as TPO or EPDM on low-slope roofs. Common on larger, flatter buildings.
- Built-up roofs with layers of felt and asphalt. Older, heavier and often repaired rather than replaced.
- Metal roofs on sloped or specialty buildings. Higher up-front cost, longer life.
The material decides the life and the cost, so inspect it before you ask for bids.
How do you inspect a roof?
- Ask for the roof history. Get the install date, past repairs, leak logs and any warranty papers.
- Walk the roof with a qualified inspector. Look for ponding water, blisters, cracks, missing shingles, failed flashing and damaged drains.
- Check the interior. Look for stains on top-floor ceilings and corridors, and for wet insulation in the attic.
- Note the layers. A roof with several layers may need a full tear-off, which adds cost and disposal.
- Review the claim history. Storm and hail claims tell you about past damage and whether it was repaired fully.
The property due diligence guide lists the full inspection set. Roof findings should be read with the building envelope and the leak history.
How do contractors price a roof?
Bids usually list a price per roof square, plus the tear-off, the disposal, the insulation, the flashing and the drains, and the mobilization and access cost. Ask each bidder to price the same scope and to state the warranty.
A hypothetical example
These figures are made up for illustration. Real prices come from bids.
A 30,000-square-foot low-slope roof is about 300 roof squares. The inspection shows a single layer of membrane near the end of its life, with failed flashing at four drains. The sponsor gets three bids.
| Item | Amount |
|---|---|
| Membrane replacement (300 squares at $450, made up) | $135,000 |
| Tear-off and disposal (made up) | $24,000 |
| Flashing and drain repairs (made up) | $12,000 |
| Contingency at 10% | $17,100 |
| Total roof budget | $188,100 |
The sponsor adds $188,100 to the capital plan, funds it from the reserve over two years, and asks the seller to credit the repairs that were due before closing. The projected returns show the roof spending in the years it occurs, not as an average.
What should investors see?
- The roof's material, install year and expected remaining life.
- The inspection findings and the leak history.
- The bid total, the contingency and the funding source.
- The warranty terms and whether they transfer.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5 or more units under Rule 506(b) or 506(c). The capital plan in the deal's offering shows roof replacement by year, so investors see the timing and the funding. DoorRaise does not inspect roofs or select contractors. Setup is $1,500 (non-refundable), and the administration fee is $5,000 a year from closing.
Start with a sponsor page or see the fees.
FAQ
How long does a roof last?
It depends on the material, the climate, the installation and the maintenance. Get the remaining life from an inspector, not a general figure.
Should I repair or replace?
A repair can be right for a roof with a long life left and a limited problem. A roof with many leaks, several layers or a failing membrane usually needs replacement.
Does insurance pay for a roof replacement?
Only if the damage is covered and the claim is valid. Wear and age are usually not covered. Ask the broker and the adjuster.
Is a roof replacement a capital expense?
Usually yes, because it extends the building's life. Ask the CPA to confirm how it is classified.
Sources
- Capital expenditures vs. operating expenses in apartments, for how to classify a roof.
- Apartment capital plan and replacement reserve draws, for how the reserve is drawn.
- Example figures are hypothetical. No outside price per square is cited here.
This article is general information, not legal, tax or investment advice. Talk to a securities attorney and a CPA about your deal. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.