There are numerous ways to add financial value to a multifamily property.

There are numerous ways to add financial value to a multifamily property. However, adding financial value to a property does not have to include a capital expense.

Ways to Add Financial Value for Little to No Cost
1. Never include utilities in the rent at your properties, ever - Even just one utility included such as water is a significant drag to a property's NOI and financial value. A utility included in the rent multifamily property is undoubtedly going to create residents that use an inordinate amount of a utility because residents have zero incentive to moderate water, gas or electricity usage.

2. Embrace the (IoT) Internet of Things – There are many IoT devices available that offer tremendous ROI. For example, there are currently IoT devices that will detect leaks and send alerts to staff. These devices have been demonstrated to reduce damage amounts. Additionally, insurance companies often extend 10-15% reduction discounts for having them at a property.

3. Deploy cloud-based platforms - Labor cost which is a significant but manageable expense. Using technology to reduce the need for multiple leasing agents, full-time office staff or make your maintenance team more efficient will also go a long way in reducing labor expenses. There are currently cloud-based solutions for virtual tours, on-demand showings, scheduling inspections, repairs and much more. Listen to industry colleagues and continually research for ways to streamline expenses and creating operational efficiencies.

The Big Takeaway
To increase the value of a multifamily property you must increase the property NOI. You can increase the NOI of a property by either increasing revenue or decreasing expenses or better yet, both. Still, the quickest path to increase your multifamily property value is to reduce expenses, embracing change process management & the IoT.