Property managers and investors work to strategize how to make their multi-unit residential property more profitable. With increasing the Net Operating Income (NOI) as the priority, reducing overhead costs and increasing the property’s value in the renter’s eyes brings great returns.
Here are some strategies to bring more profit in from your multi-unit residential rental property:
1. Add practical features that renters value
Adding a simple washer and dryer to each unit can bring a positive response from many renters. A stackable washer and dryer are also viable options and bring welcomed convenience to renters. An in-unit washer and dryer save tenants the frustrations and inconvenience of doing their laundry somewhere other than in their rental property, and that’s worth an increase in rent.
2. Add square footage to units
If it’s possible to enclose a porch and create more living space, the extra space can help draw more renters to your units. If you can discover other creative and practical options to create space, the extra square footage can provide great value for renters and boost rental prices.
3. Proactively fill vacancies
If you’ve got vacancies in your units, you’re losing money every day as a result. Consider hiring a Property Management Company to fill your vacancies for you. They have a broad reach, and proven strategies to find the best tenant for your unit in a timely fashion. And they can save you time consistently on property management tasks, maintenance, rent collection, and more.
4. Improve energy efficiency
Increase your property value, become eligible for green tax incentives, and attract great tenants all at the same time with energy-efficient upgrades for your multi-family units. Many renters love to know they are saving money with energy-efficient appliances and lights, and the savings can help influence tenant retention. Here are some energy-efficient changes to consider making to attract the best tenants and increase rental rates:
- Install energy-efficient lighting
- Install energy-efficient appliances
- Increase insulation to decrease utilities
- Upgrade windows to decrease utilities, outside noise, and indoor drafts
5. Remodel existing features
Today’s trends make remodeling choices easy to implement. Here are some of the most profitable remodeling choices:
- Flooring—Replace outdated carpeting with attractive, up-to-date vinyl, tile, or wood flooring. This sleek look brings an updated, trendy feel that attracts renters. It’s easy to maintain, durable and offers a great return on investment.
- Kitchen upgrades—Updating the kitchens in your multi-unit residential properties brings a refreshing face-lift that renters love. Adding granite countertops, a fixed island with stools or new appliances all add up to create a win-win situation for renters and investors. And you can add a new backsplash or sink for updated look renters are sure to love.
- Light fixtures —Adding distinct lighting over the kitchen island can give your properties updated charm renters are sure to love. Ceiling lighting, wall lighting, and vanity lighting in the bathrooms can all be upgraded for a refreshing interior face-lift with minimal cost involved. New ceiling fans, as well as pendant and track lighting, can also boost the property’s value in the renter’s eyes, giving you understandable reasons to increase the rent.
6. Apply valid rental rate increases
Raise your rental rates proportionate to the value increase for tenants in the upgrades and remodeling you do. Renovations can generate rent increases from 3% to 30%, depending on the specifics of your upgrades. Rent is impacted by:
- How old the building is
- Where the building is located
- The type of tenants within the building
- Competition for similar spaces in a comparable location
- The added features in upgrades and remodeling
7. Boost curb appeal
When someone drives up to your multi-unit residential property, if it doesn’t look great from the street, they may just keep driving. Add interest to your building’s landscaping with flowers, shrubs, and trees. Boost curb appeal to brighten the exterior and put out the welcome mat to prospective renters. You’ll be amazed at what an external face-lift can do to the overall investment.
Here are some exterior upgrades to consider:
- Replace siding for a crisp, new look with energy-saving benefits to tenants.
- Paint external surfaces for a refreshing overall look to your property’s exterior.
- Boost colorful landscaping and add visual interest. Consider adding some form of evergreens to the front yard for year-round color.
8. Boost security
Add a new front door, patio door, or storm door to your multi-family residential rental property for added safety and security, increased style, optimal function, and eye-catching curb appeal.
- Entry Doors—Securely protecting all who enter, a new entry door can bring a welcoming warmth to your property.
- Storm Doors—Add another layer of protection and safety renters are sure to appreciate. The additional layer of insulation a storm door brings helps keep utility bills down throughout the year.
- Patio Doors—Transform your property’s look with an attractive, functional patio door.
Find Your Dream Multi-Unit Residential Rental Property In Tulsa, OK
Rising oil prices benefit Oklahoma’s economy, which positively impacts rental rates and lowers vacancies. Now is a great time to purchase multi-unit properties and enjoy the benefits of sound investments.
Residential
Property Management
At McGraw Property Management
, we know that smart Tulsa real estate investors and residential rental property owners are keenly aware that they need to find and retain the right tenants.
● We believe it should be simple for you to lease and manage your property.
● We know how time-consuming it can be to find the right tenants
, collect payments, and manage maintenance requests.
● We’ve helped hundreds of investors find the right tenants and manage their property efficiently.
