Multifamily properties are an excellent vehicle for generating passive income and building long-term wealth but the big question is how do you add value to your multifamily properties?
In this article, answer this question and provide you with several proven ways that you can add value to your multifamily properties in 2021 while increasing your passive income at the same time
Tip #1 – Add An Onsite Laundry Facility
Let’s face it, everyone has to do laundry, so the first step that you should consider taking to add value to your multifamily property is adding an on-site laundry facility.
Depending upon the size of your multifamily property, an on-site laundry facility can bring in anywhere from $100 or more per month in passive income.
This may not seem like much but it certainly adds up over time and it makes your rental property more valuable to your tenants.
When it comes time for lease renewal, they’ll be less inclined to move elsewhere especially if they have a laundry facility and all the amenities that they need in one place.
Tip #2 – Sub-Meter Utilities
Another proven way to add value to your multifamily properties is to sub-meter utilities.
This is important because of the simple fact that not only will it cut down on your monthly costs, you will put the responsibility of paying utilities in the hands of your tenants and will eliminate them wasting water, or electricity, during the year.
Tip #3 – Add LED Lighting
Yes, LED lighting has indeed been around for some time now, but for many rental properties, the light bulbs in those properties are still ‘old school’ light bulbs.
If you haven’t changed over your light bulbs to LED lights yet, this is a smart move to make which will save you money off your electricity costs on an annual basis while also helping your property to run more efficiently as well.
Tip #4 – Install Vending Machines Or A Micro Market
Even though vending machines have always been a popular amenity that many landlords have added to their multi-family rental properties, during the Covid-19 era, landlords are also adding micro-markets as well.
Many tenants are working from home than ever before, so it makes sense to offer them the food and beverage products that they want without them having to go to a convenience store to get those items.
Tip #5 – Garage Parking
Although your multifamily property may not currently have garages, you may want to consider building them because, if you ask your average tenant if they would prefer to park their vehicle in a garage, or a carport, they will tell you that they would prefer to have a garage.
A garage offers more than just a safe space to park their vehicle, the tenant can also use some of the garage space for storing their overflow items from their rental property as well, and in many cases, garages can be less expensive to build than carports.
In terms of passive income, once you have garages to your property, you could charge your tenant a garage rental of at least $25 to $50 per month. This will increase your passive income every month while offering them a viable resource that will keep their vehicle safe while also offering them some storage at the same time.
Tip #6 – Renovate Kitchens And Bathrooms
It doesn’t matter if you’re a homeowner, or renter, two the areas that everybody spends the most time in, either in the kitchen or in the bathroom.
If it’s been some time since you updated the kitchens and bathrooms in your multi-family rental property, you should consider renovating those areas in each unit this year.
Renovating these areas of your property will add more value to your property as a whole and make it more desirable the next time that your property is available for rent.
Tip #7 – Add Onsite Storage
As I’ve mentioned in other blog posts, on-site storage is one of the top things that most tenants look for when renting a property because the average person has an overflow of items that they hate to get rid of, so they obviously will need a place to store things.
If the property that you’re multifamily building sits on has room to add on-site storage, you should consider adding storage days because you can easily charge your tenants a monthly storage fee of $50 to $100 depending on the size of the storage facility.
Tip #8 – Offer Prime Parking
Let’s sit at your multifamily property has a large parking lot and some of your tenants are always fighting each other to park closer to the entrance to your property, if this is the case, you should consider converting some of those parking spaces near the entrance of your property into prime parking spaces.
Adding Prime parking is easy to do because all you have to do is add a few signs in front of each parking spot indicating that they are prime parking spots and you can easily charge a parking fee of $10 or more per month for the privilege of being in the park in one of those spots.
Tip #9 – Pet Rent
Is your multi-family rental property pet-friendly? If not, you may want to consider allowing pets because making your property pet-friendly means that you can charge tenants a pet deposit of $200 to $400, and a pet rent of $25 or more per month.
Tip #10 – Create A Trash Pickup Service
Last of all, another excellent way that you can add value to your multifamily property while increasing your passive income every month just to offer your tenants a trash pickup service.
Even though this idea might not work if you own a fourplex or duplex, for a larger apartment building, it will be convenient to most pennants because the average tenant who lives on the second or third floor of an apartment building may not want to take their trash down to the dumpster.
You can save for tenants to time and household having to dump trash themselves simply by instructing them to leave trash by their front doors or creating space within the building that they can leave their trash for your on-site maintenance team to pick up and dump in a dumpster periodically throughout the day.
Partner With Trier Capital
Are you an accredited investor who is thinking about investing in multifamily real estate but you’re hesitant about getting started because you don’t want to do all of the work yourself? We can help!
Trier Capital is a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
To learn more about the benefits of partnering with us, contact me today by calling (630) 229-2383 or click here to connect with me online.