Increasing your Net Operating Income for your multifamily property is super important to the success of your investment. Below are 13 ways to increase the net operating income for your multifamily property:
1. Remodel the building to charge a premium
If you remodel your multifamily property, you can charge a premium for the new additions. These remodels, in the form of walk-in closets, built-in washer/dryer, remodeled kitchen and bathrooms, will be highly valuable to many buyers, and they’re likely to spend extra on leasing your property.
2. Offer on-site laundry for a cost
Many multifamily property units don’t have on-site laundry service. Imagine how great it would be if you offered paid laundry services within the premises of your multifamily property.
The cost of installing a washer/dryer is significantly lesser than the money you’ll bring in when your residents use the laundry services. You can also offer ad space to local businesses to place their advertisement in your laundry room.
3. Charge for extra storage
As your tenants’ families grow, so too will their possessions. Soon, they may not have space inside their unit to store these items. Providing extra storage space for a charge can increase your NOI.
4. Install vending machines at various points in the multifamily unit
Who can resist a vending machine? They are very budget-friendly to install and stock. Plus, studies show that a well-placed vending machine can bring you up to $100 per week.
5. Offer reserved and/or covered parking
Residents of multifamily properties would give an arm and a leg for reserved parking. More so, if the reserved parking is in a covered/shaded spot. You can charge a premium for such parking spaces and add to your NOI.
6. Provide a trash pick-up service
Trash pick-up is a luxury service that not many multifamily properties offer. This service can save a lot of time for your tenants and provide them with better living experience in your multifamily property. Many would be willing to pay extra for it.
7. Have long-term contracts with a select group of handymen
Instead of hiring handymen for individual projects, consider partnering with them for the long-term. You promise to hire those select handymen for any repair/maintenance job in your multifamily property, for the foreseeable future. The handymen get a steady stream of income, and you can negotiate lower prices for the massive business you bring them.
8. Charge rent for pets
Many multifamily property units don’t allow pets within the premises. You’ll lose out on a lot of well-paying tenants this way. Charging a tiered rent for pets depending on their size and the disturbance they may cause you and other residents, is a nice way to boost your NOI.
9. Be judicious about your water & electricity usage
Water and electricity are two of the most expensive utilities offered in a multifamily property. You can economize here by installing technology that can stem the flow of water and which can reduce electricity consumption. When these expenses are low, your NOI automatically increases.
10. Get new quotes on your property insurance
Many insurance providers automatically renew the same policy on your multifamily property, which you took out decades ago. In the process, you’ll miss out on the benefits and cost savings offered by new-to-the-market insurance policies.
This is why it’s recommended that you get fresh quotes for your multifamily property insurance every 5-8 years.
11. Rent out a cell tower close to you
Depending on where you live, you may have to pay just around $200 per month to lease out a nearby cell tower. When you rent a cell tower, you’ll provide your tenants with uninterrupted, high-speed cell phone service that seldom experiences downtime – a benefit that people are willing to pay huge fees for.
12. Provide advertising space to a brand on-site
-The Multifamily Team
Hi, my name is Michael Avent. I founded The Multifamily Review in June 2020. I’m a Commercial Agent at Northcap Multifamily located in Las Vegas, Nevada. My vision for The Multifamily Review is to be the most trusted resource for all Multifamily Investors and Industry Professionals. We strive to offer the best and most up to date content to our readers and are always open for suggestions. Make sure you sign up to join our newsletter to stay up to date on our latest blog, ebook, and more exclusive content that’s coming your way! The Multifamily Review team and I look forward to building a deeper relationship with you!
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