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  • Writer's pictureRavante Babbitt

How To Increase Value On An Apartment Building

Updated: Feb 7, 2022

Apartment buildings are bought and sold based on the value of the building. The value is determined by the amount of income the building brings in and expenses.

Primary income streams come from collecting: rent, pet rent, storage rent, and laundry.

Expenses are: maintenance issues, utilities, property management, insurance, property taxes, and contract services.

So when you can increase any one of the income streams, and decrease the expenses, that will increase the building NOI (Net Operating Income), and can drastically increase the property value.

There are a number of ways you can increase your income streams:

Renovating Units - This is the primary way we can increase the value. If we renovate units, we are able to increase rents. When you fix up kitchens and bathrooms, add in nice floors, and add updated appliances, these become more desirable for tenants.

Pet Rent - Allowing pets in the building will attract a larger pool of potential renters. Charging pet rent for $25 a month, may seem small, but will have a nice impact each month with enough pet owners living there.

Storage Rent - Often times, tenants will have more things than they want to keep in their apartments. If you have extra space onsite, giving them a place close by to store things vs a offsite storage facility will allow you to capitalize on this. People often want to keep their things close by vs driving somewhere to get them if needed.

Laundry - If you don't have apartments without washer/dryer units in them, providing those will add value to tenants and provide an additional income stream. This prevents tenants from having to go to the laundromat, and provides an easier option for daily living tasks.

There are a number of ways to increase building value, and these are only a few. If you are someone that is curious about multifamily real estate investing subscribe to the website, and schedule a call today!

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