Like any investment, the end goal of your multifamily property is to generate revenue. As the premier agent for apartment buildings for sale in British Columbia, I would like to share these 3 proven ways how you can increase the revenue on your multifamily investment.
Study the rental markets in your area and set your rates accordingly. You may want to consider adding incentives before raising rents. Smart technology, new flooring or an accent wall can make a raise in rent more palatable for your tenants. Before increasing any rent, make sure that you are aware of the maximum increase allotments or if your property is in a rent controlled area.
Here’s the Deal:
Be cautious about raising rents too quickly as turnover can be quite costly and time consuming. Tenant retention can be as important to your stream of revenue as rent increases – act accordingly.
It is estimated that each month that you have a vacant unit in your property, you are losing 8.3% of your potential yearly income. These losses can add up quickly and greatly impact your annual revenue, especially if you have more than one unit vacant. The minute one of your units becomes vacant, act quickly to get it back on the rental market. Make sure to:
- Have your lead maintenance worker ready to do any needed repairs, painting or other jobs as soon as the tenants move out.
- Begin placing a wide variety of ads the day after the old tenants have moved out.
- Try to match interest to your suites to the rental market. If you are not getting any interest from possible tenants, you may need to lower your rental price or add other incentives.
Add Revenue Streams
Look for other ways to increase your monthly revenue stream. Some excellent ways to not only add revenue, but also increase the value and interest in your multifamily property include:
- Storage lockers.
- A bike room.
- Upgraded features and appliances – smart thermostat, in suite laundry etc.
By boosting occupancy and increasing rent while looking at adding additional revenue streams will help to provide additional income to your multifamily property. If you are interested in other ways to increase your investment profits or would like to see some of the new and exciting multifamily properties that are available around the province, please contact me today. I look forward to working with you soon.