Do you own a Portland Oregon apartment building? If so, like most owners, you’re searching for the best ways to increase the value of that investment property.
Sadly, in today’s economy it’s getting more difficult for owners to increase the value of their properties due to inflation and recession.
Thankfully, owners can easily increase the value of their properties by following these tips:
Improve curb appeal
If your Portland Oregon apartment building still looks like it’s stuck in the 1970’s, it’s time to bring it forward to the 21st century by improving curb appeal.
Start by renovating your tired, overgrown curb appeal with fresh plants that have plenty of color and appeal.
Next, power wash the parking lot and walkways surrounding the building then take a hard look at the exterior of the property and determine if it’s in need of a fresh coat of paint.
Add smart appliances to each unit
In today’s world, most tenants want the flexibility of being able to control the temperature or lights in their units with their smart phones.
You can easily invest in a smart thermostat, doorbell camera or smart lightbulbs for the units in your building and add those appliances to your property.
Raise the rents
This is definitely the most obvious solution if you are look at different ways to raise the value of your apartment building investment. Before you decide to raise rents do a survey of comparable rents at comparable properties in your general location. Then try to figure out what the average rents are for your specific type of property in your specific location. This can be more tricky than it sounds and is more of an art then a science. Ask yourself if your rents are below or above the “market rents” for your area. If you find that you are charging below market rents then it is advisable to bring your rents up to keep up with current market conditions.
Install energy efficient lighting
If you pay for the electric in common areas it is always a good idea to install energy efficient lighting. Not only will this save you a lot of money in the long run but you will also be helping the environment.
Reduce tenant turnover
Every commercial real estate investor knows that when a tenant leaves and you have to replace him or her that it costs money. Apartment building tenant turnovers can really eat into your bottom line if you are a commercial real estate investor. There are a multitude of methods to use that will effectively reduce tenant turnovers. Some of them include: keeping the rents at market, maintaining the grounds nicely, responding to maintenance requests promptly and sponsoring quarterly parties or activities. In short, if you keep your tenants happy and the apartment building maintained nicely then you will reduce your tenant turnover.
Renovate the apartments
Renovating and improving the apartments with new appliances, paint, lighting/bath fixtures will allow you charge more rent for the same square footage. What this means is that you have effectively increased your net cash flow without increasing your fixed costs such as taxes and insurance.
Cost segregation analysis
While we don’t have the time or space to discuss the intricacies of cost segregation analysis, it is basically a method of accounting that allows you to depreciate your building and expenses at a faster rate and save you a lot of money. Consult a qualified cost segregation analyst or CPA.
Contact Rent Portland Homes
At Rent Portland Homes, we save owners the hassle of managing their rental properties themselves.
From tenant screening, to rent collection, our team does it all.
If you need property management, or if you would like to learn more about our services, contact us today by clicking here.