According to the research, the real estate investors in residential investments would prefer to buy apartments and no consideration on single family homes. The Question is why they don’t show interest to buy single family homes ? Because its all about Control.
The large family owners ( 5 Member or more than ) can handle the worth of their property as compared to single family and small family.
The Owner’s creativity can only increase the value of its apartment. I will list out some ways that can increase the value of a apartment.
Let me a quick to visit to you how the properties are valued before going to 12 creative ways.
1-4 unit properties are valued according to the market sales attitude. It means that if your home includes 3 beds or 2 baths comparable to the neighbor‘s home with 3 beds and 2 baths. If one of them is sold in $15 than the other one is also sold at the same price because the market approach is same for that property.
Large Family property
5+ unit properties are based on how much they produce income. Mostly, these properties are buying to make profit. They calculate the net operating income to evaluate the value of a property. Net operating income includes all expenses that are used on it.
If you calculate the value of apartment by using net operating income, it depends on expenses.
If you decrease the expense than u will save money and if you increase the expense the value will rise.
There are 12 creative ways that can add value to the apartment building :
Sub-meter utilities is can add value of a apartment . If you are tenant and you will never reports that your toilet is continuously running. You don’t pay bill of using water for accurate billing sub-meter is necessary. Dependent on the system of the property sub-meter utilities is important.
The basic facility in all rental leases is washer and dryers. It can increase the value of a apartment. This will increase $40-75 per month of you income.
Led lightings are energy savers. If You are investor and hold apartment for long , then installing led lightings is easy thing . It uses less energy as compared to bulbs.
Trading of Machines
The vending machines can produce income that will increase the value of your apartment. Many companies can provide you a service. You don’t have to buy a machine is a best thing.
Everyone needs a security of their car. They can pay more for the garage parking it can increase the value of apartment even they would pay for additional storage in a garage.
The center point is open for you. You will pay more for spots that you wanted to park a car. This will increase the value of your apartment and improve your income.
Renovations in rented apartments is essential part. Renovating the interiors and common areas of apartment that are commonly used will grow your rent .
Waste removal pickup service is important. You may even hated to pick wastage bag this is why every tenant has a right to use these services and they can pay even more.
If you are not charging for allowing pets in apartments then you missed your income . There are many vendors who charge additional amount for it .
Stores in apartments are more important than any of above. In apartment, if there is a store for boxes or some extra things you can charge additional amount.
Owners can ask for bills from residents. Owner will receive kickbacks from cable operators when residents use service.
Renegotiating expenses, it means how to make more money. Investors can even discuss about expenses which will increases the price of apartment.