Can a apartment complex go out of business?-Not enough renters.?

Answer 1

The short answer is yes. The company that runs the complex can go out of business.

If there are not enough renters to cover expenses then the company (or person) who owns the complex has to do something. Sometimes that something is go into bankruptcy. At some point the property will sell to someone (through a normal sale or a foreclosure or a bankruptcy) and the new owners will rent out the apartments.

Unless the units are dangerously unsafe, there will always be an investor who has the money to re-hab things and try again with a property.

I would guess in an extreme case the apartments could be razed and the land used for something else.

Answer 2

if the property is owned by a large property management company then chances are the answer is no. Most of the time the management/owner will sell the complex to another company that handles "distressed" properties which sounds like the case here. They will usually sell a "package" deal, which means they will sell two of their nicest properties and throw the "distressed" property in as well, if a company wants the nice properties they have to take the "distressed" one also. If there are absolutely NO renters then a company might come in and Rehab the entire place.

I worked for a property management company that took on only "distressed" properties, they got investors and rehabbed the entire complex, repainted, new pool, fencing, new lighting, new appliances and carpet in each unit repaired the elevators, upgraded the fencing around the complex repaved the parking lots etc. Doing this in hopes that it will attract more people into renting there and thus increasing occupancy.

Basically it all depends on who owns the complex, if it's just a small mom and pop then yes it's a possibility the complex might go out of business if they are unable to sell to an investor.