Apartment building revenue is one of the most attractive aspects to commercial real estate investing. But, it can be enhanced in a number of ways. That’s right, you don’t have to rely on rent alone. There are ways to increase apartment building revenue. And, most of them don’t require a huge, upfront outlay. Even those which do have an acquisition cost will pay off big time in the long-term. These are simple, straightforward strategies to make you more money without a lot of effort on your part.
Why Additional Apartment Building Revenue is Necessary
Now, let’s start with why you’d want to boost your apartment building revenue in the first place. Aside from the obvious benefit of increasing your bottom line, there are other benefits. One big advantage is that more income means more opportunity to invest in different properties. At the very least, it gives you more options to make improvements to existing assets.
There are many benefits to owning an apartment building. These include recurring income, diversifying the income across many units, lower per-unit maintenance costs, the possibility of extra sources of income over and above the rents, financing based more on the property’s financials than your own, and the buildings value often a function of rents. —Fit Small Business.com
Another reason to raise more apartment building revenue is that it helps to offset things like vacancies. Or, unexpected expenses that come your way out of nowhere. Additionally, with more apartment building revenue, you have more freedom to explore other forms of wealth-building investing strategies.
Great Ways to Create Additional Apartment Building Revenue
Of course, there are a plethora of ways to boost apartment building revenue. But, we’ll stick with some of the most simple and effective. Here are the top ways to increase apartment building revenue you can use:
- Install unit washer and dryers. Tenants greatly appreciate convenience. And, they’ll pay more for a unit that contains a washer and dryer right inside. It’s a wonderful selling feature for potential tenants comparing other options.
- Upgrade the on-site laundry facility. Another way to up your apartment building revenue is to simply upgrade the existing on-site laundry. Renovating the space and offering just a few help amenities will earn a nice return.
- Increase tenant pet fees. You probably already charge different fees for pets. But, if you haven’t revisited those fees in some time, now is a great time to do so. You can bring them up to parity with other comparable properties.
- Offer dedicated parking spaces. Tenants often complain about parking. Instead of enduring that unpleasantness, turn it into a positive. Charge a fee for dedicated parking spaces to create a win-win scenario.
- Install vending machines in key areas. If your apartment building has a pool, gym, or clubhouse, these are prime spots to install vending machines. You’ll earn a little extra every month without any effort.
If you’d like to learn more about commercial real estate investment benefits and more about the process, please contact me.