I am currently working on finding my first small multifamily property to purchase in the Phoenix, Az area before 2018 is over (house hack). Have been running the numbers on a couple duplexes/4 plexes and looking into how I can potentially increase rents once I would take over a property. I understand this may be different in different areas but was just curious if there was an average/rule of thumb on how much you could increase rents if you supply the units with a washer/dryer for the tenant instead of just having the hookups for them to supply their own. Also, any other creative ways to increase rents would be helpful as well! (Also looking into splitting the water meters so tenants cover their own water bills). Any tips/tricks would be appreciated!
In the large apartment complex where I live, an optional reserve parking space costs $20 per month. Otherwise, you park where you can find a valid spot.
Hey @Brandon Knudtson ,
One of the most reliable ways to increase rent is to give the property a face lift. Pretty much all of the apartment complexes here rebrand when new ownership takes over and the first thing they do is paint the interior and exterior and do some cosmetic upgrades (paint or replace cabinets, new counters). Updating the exterior areas can be done for pretty cheap and increase curb appeal greatly, giving off that fresh new look which can attract tenants quicker and help justify an increase in rent.
Washer and dryer inclusion may get you an extra $25-$50 a month, but you'd have to check what your competitors are offering as many apartments offer in-home and/or on-site laundry.
You can also consider LED lighting, pet rent, storage rental as other ways to add value and increase rental income.
Skywriting the info with an airplane.
Pop out of a cake and serve the notice.
Put the notice in a fortune cookie.
It's a lot easier to implement creative out-of-the-box strategies in a larger complex than in 2-4 unit residential. You can offer special covered parking spaces, parking spaces closer to the center of the complex, trash take out, etc. Can't really do too much of that with a smaller property.
Best thing is to give the property a facelift. Cosmetic fixes are best. Paint, flooring and landscaping can go the furthest and get you the best bang for your buck. Kitchen and bath remodels come next, but cost a lot more.
Ultimately it's the question of what the market will pay for and what is your competition offering. Take a look at similar size units nearby and see what they're charging for rent, and then ask yourself what can you do to your property to get the same rent.
If you have the room you could build a few storage units and charge tenants to store their extra stuff if there is a need for this.
Best way to do this is type out a document that says attention tenant ;your rent is going up .. that’s about as creative as I get
When I bought my duplex and inherited tenants, I supplied a washer and dryer. There were hookups but they didn’t have washer and dryer. Then, when their lease ran out 6 months later, I told them; “your rent is $100 below market value. However, we’d like to keep you as tenants, so instead of $100 we could give a discount of $40 per month off that, if you sign a 2 year lease. It would save you almost $1,000 in two years”. So, I raised their rent only $60 a month, and they signed a 2 year lease.