Forced appreciation has often been compared to printing money. In apartment investing, taking a few simple steps this will give you the ability to increase the commercial real estate rents.
Forced appreciation is often as simple as new landscaping for your investment, or adding amenities and services such as cable or wireless Internet service. They are simple steps that are not overly expensive, but that give you the ability to raise rents higher than the past owner was able to get for the property. You can also offer premium suites to discerning tenants. This may have an initial cost for refurbishing, but it will also allow you to rent them at a much increased price. These simple ways allow you to use your property management to create a better environment for your apartment investing, giving it an advantage and creating an increase in income.
You also have the option to impose and enforce late fees on any non-paid rents by tenants if they aren't paid by the date specified when the lease was signed.
There are other income opportunities in apartment building investing or property management such as parking and garage rentals, laundry facilities, storage, vending machines with candy, soda, or soap powder; pay phones and video machines in the laundry facility. By adding amenities such as these, the property is more convenient for the tenant, and it also creates some extra income from the building. It may also make the building more attractive to potential tenants that come to see a unit.
In every apartment building there are pet lovers who are willing to pay extra for their pets. Allow pets at premium rents and charge pet fees for each pet. Adding cellular towers, billboards and gift shops to the property will also earn you extra income in your apartment investing.
Decreasing expenses is another way to get money out of your property. These expenses include property tax, utilities, maintenance, management efficiencies and insurance. These expanses can all be passed on to the tenants. It is always wise in commercial real estate to decrease what expenditures you are able, as this increases your income and makes the property management job easier.
Also, make every attempt to decrease vacancy. Less vacancies means more rental income, getting the best result with your commercial property management. Move-in specials are one way the property management can keep the rental units filled. Gross leases, tenant referrals and increasing advertising are just some of the ways to bring in more potential tenants and keep vacancies at bay. Just like any other business, apartment building investing requires needs proper advertising. But, it may be the extra amenities that entice potential tenants.
