15 Ways to Increase Revenues in a Multifamily Property

Written By Suzy Sevier

How do we create more revenue and happier residents?

Many operators are adding more fees but how do we think beyond the fees. How can we create a space where the people and families living in our assets feel like people and not like a paycheck? To create a profit, we need to either increase the income or decrease the expenses, which affect the Net Operating Income (NOI). The NOI is a key metric when analyzing the value of a multifamily property. For this article, the asset classes that will be focused on are B & C.

Multifamily Insiders has conducted a research study on apartment communities’ use of ancillary income and here’s their list of the top 10 most commonly collected:

  • Application Fees 92.09%

  • Late Fee 87.05%

  • Pet Rent 82.73%

  • Early Termination 71.94%

  • Month to Month Fee 67.63%

  • Water 58.99%

  • Parking/Garage Fees 54.68%

  • Admin Fees 53.96%

  • Trash 53.24%

  • Washer/Dryer 42.45%

I remember being a renter and I cant tell you that I was not excited when I found out about extra fees. It seems endless and sometimes very discouraging. With housing being a basic need, how can we do something different?

What's better than fees? Value worth paying for.

Here are some ways to deliver more value to the residents:

  • Sell/rent moving supplies or boxes to new residents

  • Create moving kits with tape, boxes, packaging, etc. Sell them from your website, or build a set of items you can resell through Amazon. One-click buy and move!

  • Sell laundry and cleaning supplies.

  • Have a pool? Sell sunscreen or pool toys.

  • Upsell smart home technology packages.

  • Offer RentPlus to help residents build long-term credit. They charge a small fee to the resident, you get a cut.

  • Rent rooftop space to cellular providers.

  • Buy cable and Internet services in bulk at wholesale rates. Resell them to residents at a discount and make money off the markup.

  • Host resident events. Partner with brands who are willing to pay to get in front of your renters as a target audience.

  • Offer move-in upgrades: electronics setup, upgraded thermostat, priority parking/access to loading dock/elevators, moving assistants.

  • Rent space to Amazon so they have a place to put their lockers.

  • Apply to be a Telsa Charging Partner.

  • Install solar panels. Sell excess energy back to the local electric provider.

  • Introduce sustainability practices - LED lighting, energy-efficient appliances, low-flow showerheads, toilets, and water faucets.

  • Collaborate with non-profits like Operation Homefront and help military families who are transitioning to civilian life.

At Adventurous Real Estate Investors, we continue to find ways to positively impact the residents and create a community that they find resourceful. We are always open for suggestions so if you know of any others, please comment below!

Until next time….

Explore more. Adventure awaits.

Suzy Sevier
Previous

How We Manage Our Properties From Another Country
Next

Drought and Real Estate