4 Tips for Improving Value of Your Apartment Building
Are you familiar with the potential of the commercial real estate such as a large apartment building? If not, let us help you understand by giving you an example!
Imagine you own an apartment building and you have increased rents just by $50. Also, you’ve decreased expenses by $50/unit/month.
You own a 24-unit building and to your surprise, by making these minor changes in your rent and expenses you’ve now increased your property income by $28,800 each year!
Not convincing enough? Here’s more!
If you think it is not much, let’s just assume that the current capitalization rate is around 8.5% for apartment buildings like yours in that particular area, this means that your tiny income increase has actually increased the value of your apartment building by almost $338,824!
Now that’s the power of commercial real estate!
So how can you double this profit figure? Well, you can do it by improving the value of your commercial real estate. Here are some impact full ways to make sure your apartment building continues to improve in value.
Keep Balanced Budget
One of the most efficient ways to improve the value of your apartment building is to have a balanced budget. Make sure that the board goes for fee increase and special assessments less frequently. When you keep a well balanced and accurate budget, you don’t need to face these situations at all.
Don’t Underestimate the Curb Appeal
No doubt it is one of the most apparent advice for increasing the value of the apartment. You must make the place look great. For this, you would need to keep up with general maintenance, landscaping, modern security practices and others. This also includes making both the interior and exterior look contemporary and stylish. These efforts will help you go a long way and will guarantee that your apartment building continues to improve in value.
Don’t Avoid or Delay Inspections
Hand in hand with ensuring the cosmetics of the apartment, you must also make sure that your building’s bones are in good shape. This is important to avoid the devaluation of the apartment building and to continue to increase its value. For this, you would need to do regular and timely inspections that would help to improve the current condition of the property.
Also be on your toes to catch the catastrophic failures that often go sideways. Ultimately, it will save the apartment building as well as the board from the hassle of attempting to budget for unforeseen and costly expenses.
Install More Facilities
You can not only increase the value of your apartment building but you can earn a good amount of income by installing different facilities in your apartment building. This may include vending machines or laundry facility. When you add more amenities to your apartment building it also gives you a chance to ask more for rent.
The bottom line
If you wish to make money with your apartment building, you must increase its value. The best part about apartment buildings is that even a slight increase in value can help you earn big profits. So make the most of these tips and get more valuable information by visiting the RyanDeLaUz.com.