When it comes to multi family properties, or really any other property and real estate, your goal is to always find ways to increase the value of your investment. So, when it comes to multifamily properties, the way you do this is by either increasing the income or decreasing the expenses, which will affect the net operating income or NOI. While both are good options, in this article we will focus particularly on how you can increase your revenue by implementing a few methods to your multifamily property strategy.
Add Additional Units
The first way you can create revenue or value is by adding additional units. Now you may be thinking, how can you do this when you don’t even have a space? Well, there may be a few options you don’t even know are options. For example, let’s start with laundry rooms. Some apartment complexes will have laundry room spread throughout the building. If these rooms are large enough, you can consolidate the room, decreases the size, and convert the extra space into studio units.
A second way is by utilizing units that are being used as storage and convert them back into apartments. Make sure you stay on top of your real estate game and don’t allow your units to fall into disrepair, which can make it tempting to convert them into storage units. After all, it’s a lot cheaper to go out and buy a shed to store your supplies, then by taking away a potential moneymaking apartment unit. Also, if you’re apartment complex has a basement with windows, talk to a contractor and see if you can convert some of the space into additional units.
Generate Laundry Revenue
Laundry is perhaps one of the most untapped and undervalued services that can attract and retain quality tenants while adding revenue to your bottom line. For instance, a laundry service company can provide you with new machines, a bonus to sign a contract, and a plan on how to maximize revenue, all while maintaining the machines for a split of the revenue. If you enlist the help of a laundry service for maintenance, this will cut down on your maintenance team having to collect coins and fix machines. Letting them focus on other aspects of your complex.
When looking for apartment complexes, look for ones that have garages or closets throughout. If you keep them empty and place locks on the doors, you can rent them out to your tenants as storage units. Also, if your property has space and there is a demand for storage, there are companies that can offer prefabricated and portable storage units. These can range in cost and size to fit any budget.
Charge Late Fees
This should be a given for any investor. The reason being is that a tenant will not want to incur a fee, and extra income will be generated. If the tenant has to pay the fee once, he will most likely not repeat that mistake. The key here is to make sure you stay consistent with all of your policies and charge every single tenant violates the law.
Charge for Applications
Again, this is a given. Before renting out a unit every landlord needs to process background checks and evaluate all potential tenants. Therefore, it is only fair to charge a fee when your renter fills out an application. This will help cover any costs you incur running these background checks, and can help provide a little extra income for your services.
Encourage Renters Insurance
Quite a few property owners require tenants to carry renter’s insurance. This is because of the tenants property gets damaged; the landlord’s policy will not cover any of the tenant contents. While the law may not require attendant on renters insurance, you as the operator can attain a contract with an insurance company and offer renters insurance to your tenants at a very competitive price. This will help protect your asset and make a few bucks in the process.
These are just but a few of the many options you have when trying to increase revenue with your multi family properties by introducing Multifamily Leasing Technology. We encourage you to do further research to find other options, and implement the ones that will work best for you and help provide further success in the future.