Top 9 Simple Ways to Maximize Your Apartment Building Profits.

Commercial real estate investing has become a common and surefire investment. Earning from apartment building profits is one of the commercial property investments that you can reliably depend on. Increasing income or decreasing expenses for your apartment will consequently raise your profits and property value as well. Wondering how you will grow the revenue of your property? Well, worry no more because we got your back. Instead of acquiring as many apartment buildings as possible, you can make more money by choosing to focus on your current portfolio.

Use these simple ways to increase your apartment building profits.

Provide Storage Units to raise your apartment building profits

If your apartment building has garages, closets or any more space throughout, you can convert them into storage units and rent them. All you have to do is empty the garage units and place locks on the door and they will be ready to be rented. When there are space and need for storage in your apartment building, let reputable company such as Trachte or Betco provide you with prefabricated and portable storage units at an affordable cost.

Additional units

When you purchase an apartment building, you may find laundry rooms and stores spread throughout the building. The rooms are likely to be large and therefore consolidating them and reducing their size is an incredible way to create more space. Create additional units from the space you made and increase your income. If there are any storage units, convert them into apartments to generate more income. You can cheaply buy a shed to store your supplies and create more units for profits.

Increase Rent Strategically

One obvious way to increase your apartment building profits is to increase rents. Although you fill your unit quickly by pricing it low, you will miss on thousands of dollars in rent. When buying an apartment building, you should have a good business plan on how to increase rents. Some improvements on the apartment to make it more appealing and desirable can be a starting point for your plan to improve increase rent. Ensure your property is more comparable to the competition in the area.

Charge Late Fees

Have a policy in place for charging late fees to tenants who pay after a specific date. This will work to your advantage because the tenant will not want to incur extra fees and you will generate more income. If a tenant pays the fee once, there are minimum chances that he will repeat the same mistake.

Utility Bill Back

Ratio utility billing system (RUBS) is a program that you can use to bill back the tenants for the usage of electricity, gas, water, sewer, garbage, and cable. This is one way to work smarter and not harder. Billing back this utility usage to your tenants is a sure way to increase your apartment building profits.

Move-in Fees

While most properties use security deposits, it is a good idea to implement move-in fees. In most cases, a security deposit creates an uneasy feeling between you and the tenant. The tenant is always wondering when he is going to receive his money back. Let the tenants purchase a sure deposit besides the move-in fee. You can use part of the move-in fees to repair the apartment when the apartment when the tenant leaves.

Applications

Getting the perfect tenants for your property is a sure way to generate more apartment building profits. It is good to process a background check on your potential customers. You obviously don’t want to give control of your property which you have hugely invested in to a potential problem. Make sure every tenant is screened and charge the market rate. You can earn revenue by purchasing these reports at a discount.

Renter’s Insurance

Some apartment building owners require tenants to have their renter’s insurance. In this case, the landlord’s policy will not cover the tenant’s property should any damage occur. You can use a company that offers renter’s insurance and implement it for your tenants. You can charge a little more than what the company charges per unit and earn more income as you protect your property.

Generate Laundry Revenue

What comes into your mind when you think of laundry? Probably, you don’t get excited because of it. However, you should be excited about it as the property owner. Laundry is an essential service for tenants and therefore it will help attract and retain them on your apartment. Attracting and retaining quality tenants is a sure way to increase your apartment building profits.