Ideas for Increasing Cash Flow

[Brian Arpke]

I'm closing on my second multi-family property in a couple weeks and am curious what ways others have increased the cash flow on apartment complexes.  I've heard ideas such as adding storage space, renting furnished apartments, raising rents by percentages annually, wholesaling cable/internet to tenants, etc.  What things have you done to increase cash flow/value in your properties?  Thanks!

[Steve Vaughan]

I've had the best luck increasing CF by decreasing expenses.

Apathetic but expensive PM? Slow turnovers? Both?  Self-manage or have on-site and prioritize turnover efficiency.

By qualifying service calls before sending out the plumber, electrician, HVAC or Maytag man, I have literally saved tens of thousands.  Check breakers in the panel.  Push the stovetop burner element in towards the center.  Clear the drain trap yourself or with a handyman. 

Install water saving and tank-cleaning fill valves in toilets at turnover.  Also replace vinyl riser hoses under sinks and toilets with braided stainless for flood prevention.

Recirc pumps for hot water in multi's saves a lot of water.

RUBS electronic water sub-metering?

Resurface countertops and cabinets instead of replacing for a higher-end look.

LED lights in common areas.  

Give tenants rent discounts for keeping common areas clean, dumpsters monitored, etc instead of pros.

Shop at Habitat for Humanity and CL for one-offs and buy remnants and in bulk at box-store sales.  (appliances, flooring, fixtures, etc) Don't forget Costco for faucets and flooring. 

Install flooring and fixtures yourself or with a handyperson.  These items are expensive with pros.

A few ideas for the expense side.  Good luck @Brian Arpke!