- June 6, 2017
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Multifamily investments are a way for investors to make a good profit. But what are some changes that investors can make to create even higher returns on these kind of investments? From training your staff to keeping up with advancements in technology, there are many changes an investor can make to boost their returns on multifamily real estate. Our friends at SVN | Southgate Realty, LLC have a few ideas for some low-cost changes that will create high returns on your multifamily investments.
Summer is almost upon us and that means peak leasing season is on the way. Before activity becomes overwhelming, owners and managers of multifamily assets should now start implementing strategies that will drive long-term revenue.
By implementing a few low-cost changes, multifamily owners and managers can maximize property value, attract prospective tenants, retain current tenants, and ultimately generate higher returns on their investment.
With the help of our friends at NREI, below we outline a few strategies that should be implemented before the start of leasing season. By taking the time to handle these items now, owners and managers of multifamily properties are setting their investments up for success year-round.
Address those Capital Improvement Needs
Before peak leasing season begins and it feels like there is no time to do anything else, multifamily owners and managers should use this time to address, and invest in, capital improvement needs. By handling stalled maintenance projects and upgrading common areas, investors will not only add long-term value to their multifamily assets, but set them up to be 100% occupied at summer’s end.
According to NREI, the capital expenditures that generate the highest return on investment include communal gathering areas and indoor/outdoor amenity spaces. Examples include larger clubhouses, BBQ areas and on-site movie theaters. The reason these amenities increase tenant retention is that they establish a sense of community, which is said to dramatically minimize turnover.
Another capital improvement owners and managers should implement is…