All building owners and property managers want to maximize the value of their real estate investments. Here are some creative ways to do just that:
It’s no secret that the commercial real estate market is constantly changing. Office buildings are being leased at a much slower pace and tenants are viewing space as a service rather than a fixed asset. In order to combat this, landlords and building owners need to focus on upgrading their services and amenities while maintaining a high level of quality.
Tenants will appreciate these improvements in quality of service if they help with the costs associated with vacancy and turnover: advertising costs, repair costs, etc. It’s best to have long-term tenants on commercial real estate properties; rents should be set high enough to encourage them. A great location and excellent customer service are two other ways of keeping a property occupied!
Offer Cleaning
Offering a cleaning service is a great way to generate additional revenue for your building. You can offer a discounted price to your tenants, and it’s a service that they will appreciate. Plus, it’s an easy way to make money–you can simply hire a local cleaner to do the work for you.
Implement a valet garbage service
Garbage is a necessary evil in life, and it seems to be constantly generated no matter where you go. Unfortunately, there are few places that have the space to store garbage long-term, so it often becomes an issue for building owners. In order to enforce leases or provide incentives for tenants to move out, implementing a valet garbage service can be extremely helpful.
Not only will this service keep your property clean and organized, but it can also be lucrative if done correctly. Garbage disposal might seem like an unpleasant topic, but with the right attitude and approach, it can be a valuable asset for your business.
Consider charging pet fees
Many people think that pet fees are a common thing, but they’re not always required by law. In fact, some homeowners associations (HOAs) choose to forgo this fee altogether in order to entice new residents. However, you could potentially make more money by charging a pet fee. This would be especially beneficial if your HOA is struggling to bring in enough revenue each month.
Keep in mind that some homeowners may be upset about this decision, as they may see it as an additional expense on top of what they’re already paying. It’s important to stress the importance of the community and how everyone needs to pitch in their fair share. You may also want to consider special assessments as a way of generating additional revenue–but only if it’s absolutely necessary.
Ultimately, your HOA can make money by doing activities it was originally built to do, such as cleaning up the neighborhood or collecting fees for special events. Another option is to charge a fee for outside parties renting community space, like a park or pool area. This can be lucrative if done right and can really help improve the overall look and feel of the community
Offer Furnished (or Semi-Furnished) Rental Units
Offering furnished or semi-furnished rental units can be a great way to generate additional income. There are a few things to keep in mind when doing this, such as the fact that renters will expect that other people have already been living in the unit. In addition, used furniture can be a great value, but there are some challenges with coordinating colors and styles. When in doubt, buy everything black or brown to coordinate your space better than you would buying new furniture. Furniture does not hold its value for long-term use so you can buy used pieces for a tenth of their original price.
There are additional ways to make passive income, such as by renting furnished or semi-furnished units. Understanding CapEx is not rocket science and can be done through understanding the condition of a rental property. Passive income can be made in many different ways, such as by renting furnished or semi-furnished units. Spark rents out furnished rental units and offers a range of semi-automated income sources that can be leveraged to earn more from the rentals. The marginal gains are 1% improvements which will help you become a superstar in real estate
Ensure Proper Maintenance
One of the most important things you can do as a building owner is to ensure proper maintenance. This will make your tenants feel more at home and comfortable in their surroundings. In addition, it will help prevent expensive repairs in the long run.
There are many ways to maintain your property without having to spend a lot of money. For example, you can carry out regular inspections to identify any problems before they become too serious. You can also make sure there are no electrical faults or water leakage.
It is also important to keep your property looking its best. You can improve the exterior without having to take out a loan or spend any money. Resources online are available that provide advice on how you can improve the appearance of your building without spending any money.
Finally, using security cameras and alarms will increase the value of your property. Security cameras and alarms can be installed to provide 24/7 security for tenants
Install vending machines and coin-operated laundry facilities at the complex
Installing vending machines and coin-operated laundry facilities at the complex is a great way to generate additional revenue. The machines will not only bring in extra money, but they will also be appreciated by tenants. In-unit laundry is a top rental amenity for tenants, so make sure you provide a change machine nearby in case there are no coins left in any of the machines.
The laundromats provide convenience for tenants and improve tenant retention rates. They are also a great way to attract new tenants to your property. Make sure the coin-op laundry machines at the complex are working properly so that everyone can take advantage of this added convenience!
Increase Monthly Rent Strategically
When it comes to increasing monthly rent, timing is everything. If the market values are high, a property owner would be wise to raise rent in order to maximize their return on investment (ROI). However, if the market is down and values are low, it would not be prudent to increase rent at that time.
In addition, it’s important for commercial property owners to remember that they are in a service industry. Announcing a rent increase with ample warning will give tenants enough time to budget for the change. Furthermore, providing an explanation as to why the increase is needed and how it will benefit your tenants is always appreciated.
Finally, consider lowering your rent when you feel it is appropriate but only after giving proper warning and explanation of the benefits. This allows your tenants plenty of time to plan for the decrease while also showing that you care about them as individuals. And lastly, always remember to let your tenant know about any upcoming changes–especially a rent increase!
Certify For A Green Building
Save on operating costs
There are many ways to save on operating costs for your apartment complex.
One way is to consider cutting back on the frequency of services like parking and electric car ports without sacrificing their value. This can free up space and resources that can be put towards other areas of the property.
Another way to save money is by installing bike racks. Bike racks provide a secure, covered area for tenants who want to store their bikes at the apartment complex. They also promote healthy living and reduce traffic congestion.
A win-win situation is created when tenant rents are increased without raising rent prices. These strategies can increase revenue and decrease operating costs simultaneously, creating a more sustainable business model for your property.
Enhance property value and marketability
When it comes to commercial property, there are a few things you can do to enhance its value and marketability. For instance:
Optimizing the use of space within a building is one way to get more income. If you have not yet finalized your real estate, consider finishing it by dividing the interior into offices and renting them out separately. A well-designed space will keep tenants happy and is important for achieving certification. Tenants want a little more space than they’re paying for, but not too much more. So, adding square footage can increase rental income without pushing tenants away.
Another thing that makes a big impact is getting your building certified as a green building. This tells potential buyers or renters that you’ve made an effort to be environmentally friendly, which is becoming increasingly important in today’s society.
Reduce environmental impact
It is not just about reducing the environmental impact of your building, it is also about saving money in the long run. Routine maintenance can help save on tenant turnover and increase net income. Furthermore, green building certifications are becoming more important in today’s market. Pandemic’s impact includes the changing of valuations for those in the building. Valuations change to reflect the impact pandemic has on buildings, with a focus on green building certifications.
Sell advertising space
In order to generate additional revenue, building owners can sell advertising space. Advertisers are always looking for new and innovative ways to reach their target audience, and selling advertising space is a great way to meet this need. Additionally, this option can be very lucrative for the property owner because advertisers are often willing to pay a high price for prime advertising space.
Another way to generate revenue is by naming rights. When a building is named after a company or individual, it gives that person or organization an incentive to maintain the name’s visibility. This can be especially powerful if the company or individual is associated with the building in some way. For example, if Coca-Cola was the primary sponsor of an arena, they would likely want their name displayed prominently at all times.
The property owner could also make money from a small fee paid by vendors who use the space for selling their wares. This could include everything from food trucks to street performers. By charging these vendors a small fee, the owner can create another stream of income that helps offset costs associated with maintaining the property
Look into parking costs
Parking is often an issue for those who live in or visit big cities. And it’s no secret that finding a spot to park can be expensive, especially during special events when prices are jacked up. But what about the people who own or manage apartment complexes and other types of rental properties?
It’s not just event-goers who have to worry about parking costs; building owners and managers have to find ways to generate revenue from parking spaces. This can be done in a variety of ways, some of which don’t involve raising rates for tenants.
For example, the property owner could offer a free month of rent to any tenant who agrees not to park on the lawn. Another option is for the tenant to be offered a cut of the proceeds generated by selling off parking spots during a major event like Strawberry Festival.
There are many different ways for building owners and managers to make money off of their parking lots–the key is finding what works best for them and their tenants!
Lease Your Rooftop to a Cell Phone Company
Rooftop cell phone towers are nothing new, but what about leasing the rooftop to a cell phone company? Many building owners and managers don’t realize that they can make money off of their rooftops.
There are two main ways that building owners can make money from cell phone companies: leasing the rooftop for a monthly fee or selling advertising space on the roof. If you’re thinking of leasing your rooftop, it’s good to speak with a rooftop lease consultant before signing an agreement.
Don’t become complacent with your vendor contracts
Vendor contracts are important to keep an eye on, especially those with high revenue potential. Just because you’ve had a good relationship with a vendor in the past doesn’t mean they won’t seek out new opportunities elsewhere. It’s always important to stay competitive and be willing to renegotiate terms if needed.
If you want to make sure your venue remains as desirable as possible to potential vendors, consider holding a vendor fair. This is a great way to attract new business and let current vendors know that you’re still interested in doing business with them. You can also update your website and social media platforms to list vendor fairs as one of the services you offer!
Another way to attract potential vendors is by reaching out to people who might be interested in their products or services but don’t necessarily live near your venue. Chambers of Commerce or business associations are great places to start. Try mixing up the types of entrepreneurs who attend your vendor fairs–this will help create more buzz and interest around the event. And finally, consider adding party planning or direct sales representatives into the mix! They can bring added value for attendees and help make your event even more successful.
Generating revenue is a year-round task. It’s important to think of ways you can make money throughout the entire year, not just during the busy season when your venue is in high demand.
