Simple Ways of Increasing Apartment Building Value

In Multifamily & Apartments by Tim Diesel

Increasing apartment building value is actually quite straightforward. But, some do come with upfront costs. However, the ROI or return-on-investment is often very worthwhile. The fact of the matter is, commercial property investment is hugely lucrative. And, the reasons are simple to understand. But, this doesn’t mean if you buy into or purchase an apartment building, you have to settle for the status quo revenue. That’s because there are ways of increasing apartment building value to make it a stronger income asset.

Why Apartment Buildings make Great Investments

Apartment buildings make great investments because they outperform other types of real property. Since there are multiple rents collected, instead of just one, two, three, or a few more, it’s better. What’s more, when you have multiple units, with varying sizes and amenities, you can charge different rent amounts. Which means you can rent out a 2- or 3-bedroom, 2- or 2 1/2-bath for more than a studio or 1-bed, 1-bath.

Have you ever wondered why the big players in residential real estate investment don’t focus on single family homes, but instead buy apartments? There are several reasons for this, but the big one is control. Owners of larger multifamily property (5 units and greater) can control the value of their property to a much greater predictability compared to single family and small multifamily (2-4 units). —

Also, a larger apartment building gives you more opportunities to install more resident amenities. For example, a pool, gym, clubhouse, et cetera. Furthermore, a large apartment building boasts bigger equity gains. When combined, these reasons alone clearly show way apartment buildings make great investments.

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.

If you’d like to learn more about commercial real estate investment benefits and more about the process, please contact me.


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