Multifamily investing is an excellent way to build wealth and generate cash flow every month but, what do you do if you want to increase the passive income from your property? The answer is to add value to your property.
Thankfully, there are a wide variety of ways to add value to a multi-family property including upgrading bathrooms and kitchens. In some cases, you can also separate utilities to pass those expenses on to your tenants.
If you’re new to multifamily investing, or you don’t know how to get started with adding value to your property, this article will offer you several tips that you can use for adding value to your multi-family investment property.
Tip #1 – Add More Storage To Your Multifamily Property
The first way to get more value from your multifamily property is to add more storage.
Storage is essential because of the simple fact that everybody has an overflow of items that they don’t want to get rid of and have to store somewhere so why should they not have the opportunity to store those items on your property?
The average storage facility across the United States charges between $50 to $100 per month, it makes sense to consider adding storage to your multifamily property but, before you get started with building storage unit on your property, it’s best to survey your tenants first to find out what type of storage needs that they might currently have.
If you have room on your property, it’s easy and cost effective build a storage unit because their construction costs are extremely low. For example, you could build a four-bay metal building with 10 x 10 for less than $1,000 and easily rent out each storage unit for $50 per month. Do the math.
Let’s say that your tenants don’t have the need to store items in a traditional storage facility but, they may have the need to store smaller items at the property. In this case, you may want to consider investing in an Amazon storage locker.
Adding a storage locker to your property will give delivery drivers the ability to drop packages in on-site storage lockers for your tenants rather than leaving them in front of your tenant’s front door.
Tip #2 – Increase The Safety Of Your Building
Another thing that you can do to add value to a multi-family property is to focus on increasing the safety of your building.
Everyone wants to feel safe and secure when they live in a multi-family property, especially when they walk from their car to their front door.
Here are some things that you can do to increase the feeling of safety and security at your property:
- Add more lighting outside your property.
- Trim bushes, shrubs and other landscaping so that they are no higher than three feet high.
- Eliminate all hiding places from the exterior of your property. This is important because you want to take away the opportunity for criminals to have the ability to stash weapons, stolen goods, or sneak up on your tenants when they arrive home from work at night.
- Invest in security fencing. Your goal should be to have security fencing that’s impossible to climb and protect your property from intruders rather than just looking pretty.
- Remove glass entry doors. Every entry door should be made of wood or steel because glass entry doors are easy to break.
- Upgrade door hardware for every rental unit. Focus on updating locks to the latest hardware so that criminals will not be able to easily break those locks or use copies of keys to enter the property.
#3 – Invest In An Onsite Laundry Area
As with adding storage, another important thing that you should consider adding to increase the value of a multi-family property is an on-site laundry area.
Adding a laundry area is easy to do and it’s something that will add immediate value to your property as well as adding an additional $300 or more per month to your passive income.
If each unit in your rental property doesn’t have a washer and dryer, your tenants have to do their laundry somewhere, so why should have the ability to do their laundry on-site at your property?
#4 – Upgrade Kitchens And Bathrooms In Each Unit
Upgrading kitchens and bathrooms in any multi-family rental property are important because these are the areas where tenants typically spend the most time and they’re also the first areas that a prospective tenant will look at when they are thinking about moving into a multi-family property.
If the kitchens and bathrooms in your property are outdated, you should update the kitchen and bathroom in a unit each time a tenant moves out because this will also increase the value of your property as a whole.
#5 – Make Your Property Pet Friendly
Even though you may have previously said no to accepting pets in the past, another important way to increase the value of your multi-family property is by making your property pet friendly.
Since many tenants who have pets often have a difficult time with finding pet-friendly units, once you make your multifamily property pet-friendly, you will attract a larger number of tenants who are looking for properties that accept pets.
Another positive is that you can charge a pet deposit, and a monthly pet rent for each pet as well, so it’s possible that you can increase the rental income from each property by $50 to $100 or more per month simply by making it a pet-friendly property.
#6 – Upgrade Common Areas
Does your multifamily property have common areas but those areas look like they’ve not been touched since the 1970s? If so, another upgrade that you should consider making to your property is upgrading the common areas.
This is important because upgrading common areas at your multifamily property also helps to encourage tenants to congregate together and creates a shared sense of community within the property.
#7 – Improve Curb Appeal
Last of all, but most important, another thing that you can do to add value to your multifamily property is to increase the curb appeal of the property itself.
Curb appeal is important because it’s the first thing that every prospective tenant is going to see the first time that the end of your property so you want to make you count.
Partner With Trier Capital
Are you an accredited investor? And you’re thinking about adding more multi-family properties to your portfolio but, you don’t have the time or desire to do the work that comes with sourcing, acquiring, and managing those properties yourself? If so, I encourage you to contact me.
We are a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
To learn more about partnering with us, contact me today by calling (630) 229-2383 or click here to connect with me online.