ARTICLES
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How to Increase Your Multifamily Homes Value!By Pierre Mouchette | Real Property Experts LLC
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To increase the value of your multifamily home, you can implement any, or all the following value-added strategies.
Decrease Property Taxes - go to your local appraisal district and appeal the current property value. You do this to lower the book value of the property on the tax rolls. If approved, this will noticeably decrease your overall property tax expenses. To accomplish this, look at the field cards to see and compare what your neighbors are assessed at. Use this information to your advantage in explaining to the authorities how they have over-assessed your property in relation to your neighbor's properties. Do this before you make any improvements to the house as indicated below.
Decreased Expenses - Reduce expenses by doing specific functions yourself, such as
Pass Expenses on To Tenants - see below.
Raise Rents - If your rental rates are significantly below the rest of the market, you may be able to increase rents at the next available opportunity. Even a 3% annual inflationary increase will add up over the years. Remember, if you follow the suggestions below, your property will have more rent value.
Make Repairs and Improvements - if your property is outdated and looks like a reject from the 50’s, a simple cosmetic job could be the answer. Upgrades can bring in today’s rents. Items for consideration are:
Decrease Property Taxes - go to your local appraisal district and appeal the current property value. You do this to lower the book value of the property on the tax rolls. If approved, this will noticeably decrease your overall property tax expenses. To accomplish this, look at the field cards to see and compare what your neighbors are assessed at. Use this information to your advantage in explaining to the authorities how they have over-assessed your property in relation to your neighbor's properties. Do this before you make any improvements to the house as indicated below.
Decreased Expenses - Reduce expenses by doing specific functions yourself, such as
- Property Management - purchase accounting software and do it yourself. At years end, send the file to your accountant.
- Advertising - go online and learn how to advertise. Place your advertisement in the appropriate media when you have a vacancy.
Pass Expenses on To Tenants - see below.
Raise Rents - If your rental rates are significantly below the rest of the market, you may be able to increase rents at the next available opportunity. Even a 3% annual inflationary increase will add up over the years. Remember, if you follow the suggestions below, your property will have more rent value.
Make Repairs and Improvements - if your property is outdated and looks like a reject from the 50’s, a simple cosmetic job could be the answer. Upgrades can bring in today’s rents. Items for consideration are:
- Lawn beautification.
- Exterior patch. Repair and paint.
- Replace or install outside lighting with motion detector activated ones.
- Replace common area door lock with buzzer and intercom system.
- Replace windows.
- Patch and repair units.
- Paint the units.
- Replace the fixtures and appliances with new ones.
- Provide coin operated washer and dryer in basement.
- Provide whole house water filtration.
- Provide individual water meters.
- Provide instantaneous hot water heaters.
- Put in central station monitored burglar and fire/smoke/carbon monoxide system.
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RPE Category (Digital Digest)
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REAL ESTATE | RESIDENTIAL SMALL ASSET INVESTOR | Investment
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PUBLISHED:
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March 13, 2021
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