If you´re thinking how to increase the value of your multi-unit rental building and how get more money with it; you will find in this article some strategies to achieve that. In the case of condos, the price point is even lower.
The first step to increase the value of your property is making the renovations and remodeling that are necessary, for example, painting, updating flooring, getting new appliances; but when you want that your tenants feel comfortable, is important that you invest in improvements like heating, air conditioned or all related with HVAC systems.
It is important that your property looks good and it is in good conditions, otherwise you´re going to attract people that don’t have good manners and behavior, for that reason it is imperative that you assign a small percentage of your budget to make the necessary maintenance, this is important because if you fix the things on time and regularly, you will avoid spending substantial amounts of money to replace them.
On the other hand, as a homeowner, if you want to reduce utility cost, consider investing in Energy-efficient thermal insulation, replacement windows, and lighting, also, to avoid suits from your tenants, because their safety is compromised. It is suggested that you also invest in home fire alarm systems, security doors, and fire sprinkles systems.
Second, if you wish to increase the value of your multi-unit building, the strategy to subdividing or combining units is a good option, if you have a unit between 2,800 square feet and 3,500 square feet, you can consider dividing it into two units, it will be easier to rent, the cost will be reduced for each tenant and your target will be wider, the big benefit of this strategy is that you are going to reduce the vacancy, keeping the unit occupied most of the time and will be able to generate income continuously.
Alternatively, if you have a space in your building, without windows, you can rent it like a storage space, some companies are looking for space like that, is a good option to get more money and without the stress of having tenants.
In any case, have a premise of not sacrificing the quality of your property, but, if you want to reduce expenses, think about cutting expenses such as accounting, advertising, insurance, lawn maintenance, legal fees, licenses or property management, that will help you a lot.
In view of that different tenants have singular ways to manage public services (utilities) like gas or water, it is important that you consider that each tenant pay his/her utilities separately, there is a huge industry that can help you assign the utility expenses equitably to each one of your tenants.
One thing that works when you want to increase the value of your multi-unit rental is to rent a premium parking, which means, rent an exclusive parking lot, the reason is because some tenants want to reserve good space for their “treasured vehicle”; the other main reason is that in multifamily properties the shared recourses are abused and the tenant does not use them adequately.
As a last strategy and even if you don’t believe it, it is to charge a pet fee to the tenants that have pets. The main reason is that if your building is not pet-friendly, automatically you´re going to eliminate 50% potential tenants, so, with this fee you can have peace of mind in case that the pet makes some damage or get extra money at the end of the month.
With all the strategies mentioned in this article, you can find many ways that can help you increase the value of your multi-unit rental building, the final objective is that you can use them according to your own needs.