Sunday, November 23, 2008

20 Ways to Add Value to Your Multi-Family Properties

If you own a multi-family property you know that for every dollar you add to the bottom line you add between $8 and $12 to the value of your property. If you use the 20 tips below to add $5000 to your annual bottom line -- for example -- you just made yourself $50,000 if you decide to sell. You can even use this increased value to obtain a larger line of credit, if you don't want to sell, and use that money for other investments.

20 Value Enhancers

  1. Increase occupancy level
  2. Increase rental rates
  3. Add coin-operated laundry and vending machines
  4. Subdivide extra land
  5. Change the zoning
  6. Change the use
  7. Change the allowed density
  8. Change ownership type (condos, etc.)
  9. Sell ownership interests in the property (like a time share)
  10. Allow billboards or cell towers on the property
  11. Lease your water rights
  12. Sell your air rights
  13. Accepts credit cards for rent and charge a fee
  14. Use collection agency for uncollected rents
  15. Lower property taxes (e.g. if crime goes up, state that value has gone down, and thus taxes should follow)
  16. Lower utility costs: electricity; water reducing devices
  17. Renegotiate maintenance contracts
  18. Lower repair costs
  19. Lower tenants turnover rates; every time a tenant leaves, find out why
  20. Refinance the mortgage to get a better rate

Labels: , ,

Links to this post:

Create a Link

<< Home