What would be the consequence of physical deterioration over time?

Physical deterioration over time negatively impacts a property's condition, leading to various issues that can diminish its overall desirability. As a property shows signs of wear and tear—such as structural damage, outdated features, or landscaping decline—potential buyers or renters may see it as less appealing compared to newer or well-maintained alternatives. This reduction in attractiveness can lead to the property sitting on the market longer or selling at a lower price, ultimately decreasing its market appeal.

In addition, while physical deterioration may indeed lead to increased maintenance costs, this aspect relates to the physical upkeep needed to counteract the negative effects of deterioration rather than directly affecting market appeal. Enhanced property value and improved tenant satisfaction are generally not outcomes of deterioration; rather, they are typically associated with well-maintained properties. Therefore, the consequence of physical deterioration is primarily reflected in reduced market appeal, as it creates a perception that can drive potential buyers or tenants away.