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Posted over 4 years ago

How To Improve Your Property From The Outside In?

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There are number of ways to improve a property and I just want to mention our recent property and things we did in that property to ultimately make it perform better and when we took on this property, it wasn't an ugly dog, so we looked at it from the outside in, because if we're going to ask more of the tenants from an income perspective, we want them to feel that the rent increases we are asking for are justified.

From that, we went forward and changed up the signage, we did an entire overhaul on the landscaping and really cleaning up the property from trim trees, hedges, mowing lawn flowerbeds and anything else that had to be trimmed up, to really just give it a better landscape. Overall curb appeal past that, redid the parking lots, the parking lots weren't in rough shape, so you want to expect that you're going to have the tenants when they come to the property, their first view of the property is going to be great landscaping, new signage and they're going to pull into a parking lot that's not written of potholes.

Once we've now completed on that fast, we now went inside and from a owners perspective, we want to utilize on things that are going to make the property more efficient for us, so since this wasn't all owners paid property, we focused on correct and the utilities and with the utilities, that two of the buildings had boilers that were basically running at about 40 to 40 percent efficiency, so we had the money put into our budget to replace these two boilers and it cost us a little over $20,000 to replace these two boilers and these two boilers coming in now maximizing out on efficiency, is now going to cut down our overall gas bill, because it's not really just having a bunch of heat that's being wasted on inefficient boiler systems, that were in place before to maximize on this.

We started replacing windows, because if we're going to have buildings that are now pumping out heat and then we have really single pane old windows that have a pretty dim quality of insulation, then we're basically pumping in money to maximize on the heat, when the heats just going to continue to go out the building, because it's just going out the windows, so you want to make sure when you're doing improvements, that you're thinking of the improvements from point A to point B. On top of that, we went forward and also replaced toilets, shower, faucets, and showerheads, we really just put in aerators and what this created was instead of having an overuse of possible water, where we are again paying the bill, we've now put in low e flush toilets and what that's done over a year, is cut down our water bill over 30% which is a massive savings, so just think of our water bill is sixty thousand dollars a year and we cut that down 30% that's roughly around eighteen thousand dollars, let's just call it twenty thousand dollars for overall, so at twenty thousand dollars is going right to the bottom line, so it's a twenty thousand dollar improvement in our net operating income.

Now it's just fewer expenses overall and for easy math let's say the building is at a ten cap, for four value, so if we take that $20,000 at a ten cap we've just improved that property just by really improving the efficiency of the utilities over two hundred thousand dollars. Well, these are just some of the ways that we looked at a property without even talking about rent increase, just one, make the tenants feel better, that they have a better place to live and to maximize the property, so we have a better place, a more efficient place to operate and ultimately a better thing for our pockets.

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