Increase Apartment Cash Flow
Ways of Increasing Apartment Building Value
Now, let’s get to making an apartment building investment deliver more for you. It’s important to know that you can drive up a multifamily property worth just by doing a few things. So, here are some effective ways of increasing apartment building value:
- Raise rents.Okay, so this sounds like it’s in the all-too-obvious column, but it’s definitely worth including. By increasing monthly rents, you necessarily increase your profit margin. And remember, rents only have to go up slightly to make a big impact on your bottom line.
- Bill back utilities to tenants.Another way to increase a multifamily property’s value is to simply bill back a portion of the utilities. Here again, the amount charged doesn’t have to be a high percentage. Just charging a little utility costs back to tenants will have a substantial impact.
- Keep the property well-maintained.Of course, part of the equation must include keeping the property well-maintained. Put another way, the more you do in regular and preventative maintenance, the lower your costs will be in the future.
- Charge a premium rate for storage space.If there are storage areas or garages on the property, those present a wonderful monetization opportunity. Charge a premium rate for things like garage spaces and storage to additionally raise an apartment building’s value.
Of course, it’s always helpful to add profit-making amenities. For instance, a coin operated laundry, vending machines, and more.