What are the three types of obsolescence mentioned?

The three types of obsolescence relevant to property management are physical, functional, and economic obsolescence.

Physical obsolescence refers to the deterioration that occurs in a property due to wear and tear over time, which can affect its overall condition and value. This type of obsolescence is often evident in the physical attributes of the property, such as roof damage, plumbing issues, or outdated electrical systems.

Functional obsolescence occurs when a property no longer meets the needs or expectations of the market or its users due to changes in design or technology. This can include features that were once desirable becoming outdated or ineffective, such as a lack of modern amenities or layouts that don't suit current living standards.

Economic obsolescence, often referred to in some contexts as external obsolescence, is related to external factors that negatively affect a property's value, such as economic downturns, changes in zoning laws, or the decline of the neighborhood surrounding the property. This type of obsolescence is typically beyond the owner’s control and can significantly impact property values.

These three types of obsolescence are crucial for property managers to understand because they can directly impact property values, rental rates, and the overall viability of a property as an investment. Recognizing and