If you own any multifamily property, you probably would agree that investing in this type of real estate vehicle is more of a “marathon” than a “sprint.” That being said, there are ways to add value quickly (and effectively) to small and mid-sized properties over a short period of time to get you off on the right foot. In today’s video, I share 3 ways that you can add immediate value to your small or mid sized multifamily. These strategies will get you moving into the marathon of multifamily ownership.
3 Immediate Ways to Add Value to Your Multifamily Purchase
1. Rename the building.
Many larger multifamily properties and apartment complexes tend to have a name (“___ Lofts,” “___ Apartments,” etc.). When you acquire a property such as this, it likely has a prior name and pin drop on Google. Whatever reputation the prior owner had is going to show up for the building. This could be a big issue if a lot of people have complained on places like Apartments.com. You are no longer that owner, so make sure people know you are going to re-establish things. Make a new brand for yourself, starting with a new name for the building.
2. Redo the common areas.
You could put in some bushes on the exterior, spruce up carpet on the inside, add fresh paint, and much more. Current tenants will appreciate it, and along with the new name, it will help establish a fresh feel. Prospective tenants touring the property will immediately notice the upgrades and get a great first impression.
3. Get the existing tenant base on your contract.
These residents’ contracts may have expired or may be expiring. You may decide to keep them at the same rent, but lock them down under your agreement. This can not only be important for working with lenders and while refinancing, but it also establishes your control over the property.
Multifamily investors: Have you used any of these strategies? What would you add to this list?
Let me know with a comment!