How to increase multifamily building income and add value to property

Do you know that a calculated investment in your multifamily building can enhance your Net Operating Income (NOI) to a great extent? Yes, there are various ways besides the conventional method of raising the rent for increased income. If you spend some dollars on your multifamily property, you would receive substantially higher returns. Below are just some of the steps you can take to increase income as well as add value to your multifamily apartment:

1. First impression is the last impression

You cannot make a second impression. Any prospective tenant who wishes to occupy the multifamily apartment first gets a view of the building from outside. This is his first impression and no matter how good the building is from inside, he will judge upon the exterior appearance. Therefore, it is important to work on the exteriors to increase the curb appeal of the structure. Getting the building painted and new landscaping can help in attaining these objectives. As a result the potential tenants would remain interested in moving into our multifamily apartments and pay the rent that we desire.

2. Amenity brings prosperity

Providing additional amenities and appliances to the tenants can lead to an increase in income. If the additions are done carefully, many of them can bump up the rents. Washer and dryers are one of the major amenities which are provided in a multifamily apartment. An investment of about $1000 for buying it can turn up the rent by $40-50. Modular appliances in the kitchens too can have a similar effect on the rent. You can also collaborate with some companies to place and maintain vending machines inside your multifamily building which can provide you with some rental as well as increase the value of property too. So, depending on the number of units you have, you can estimate the profits you can reap from the whole multifamily building.

3. Prime Parking can be rewarding

Some people tend to prefer to have a reserved parking spot for vehicles. You can charge a premium for Prime Parking by allowing a given spot to be reserved for those who pay for it. If your multifamily building is in a densely populated area, people may bid for higher prices to get the desired spot. It not only increases the income but also enhances the value of the given multifamily building. Similar approach can be taken for available garages.

4. Increase saving on lighting

Lighting is another major factor which is crucial for multifamily building. Lighting can have major impact on earnings as those large electricity bills can be reduced significantly by using LEDs which consume negligible electricity, provide efficient lighting and are durable as compared to other modes of lighting. Also the external lighting should be such that the multifamily building is well lit as it impacts the attitude of the prospective tenants who look forward to move into one of your apartments.

5. Use RUBS for expenditure cuts in multifamily building

Ratio Utility Billing System (RUBS) allows you to charge the tenants for utilities. It is used for water, electricity, gas, garbage disposal and other utilities based on a number of occupants, size of apartment, etc. It is a suitable alternative to sub-metering. It removes concerns from your side about tenants who may waste the consumption of utilities as they know that they won’t have to pay for it. Using RUBS in multifamily building eases you from these matters. The tenants too tend to use the utilities efficiently when required to reduce their bills.

6. Interior to be superior

Before bringing the prospective tenants for a tour of interior of the multifamily building, you should make sure that the plaster is tidy and there is no dampness in the walls. The damp patches should be removed because if a client turns away after seeing them, he would spread the word about it in his circle. Some of your future tenants would be now off the list. Therefore, the interiors should undergo cleaning and if possible, re-painted before giving a tour so that you may get a good rent for the apartment.
The aforementioned tips can increase your income to an extent, turn you hassle free as well as add that crucial value to your multifamily building and apartments. These investments would pay back more than what you would make at the stock market and that too with a lesser degree of risk involved in it.