Tips for Keeping Your Multifamily Home Profitable

Multifamily homes are great for investors because they provide multiple, cash-flowing units and can help you build a strong real estate portfolio quickly. These properties are also much easier to manage than multiple homes in different locations. They may even be able to provide you tax savings, among their many other benefits. If you’re invested in multifamily real estate, or are considering a multifamily home for the first time, you’ll want to make sure you’re doing everything you can to keep the property’s cash flowing in the right direction. In this post, we go over a few of the things that you can do to help keep your investment profitable.

 

Tip #1: Make sure the units are appropriately priced

 

First and foremost, you need to make sure you’re charging the right amount in rent for each unit. In order to do this, you’ll have to do a little bit of research on your own. Look into rents for multifamily units that are like the ones in your property. That mostly means units that are of a similar size and age, although keep in mind that certain renovations/amenities can affect that price. The location of the property and the neighborhood it’s in can also be a factor. If you’re having trouble finding a tenant after a while, you may actually be overcharging, so don’t be afraid to lower the price a bit until the unit is filled.

 

Tip #2: Keep the units occupied, but also screen your tenants

 

Of course, in order to get the most profit from your multifamily home you need to make sure every unit is occupied and producing rental income. That doesn’t mean that you should rush to fill every unit though, and that can actually come back to bite you. You don’t have to look far to find horror stories of awful tenants and costly evictions. To avoid such a situation, you’ll need to spend some time screening your tenants. Most landlords will recommend you run a credit check, since it helps you get an idea of the tenant’s ability to pay you in a timely manner, and some suggest a background check as well. Although it will likely take more time to find the right tenant, these actions can save you money, or maybe even more importantly peace of mind, in the long run.

 

Tip #3: Stick to practical renovations

 

If you want to increase the rental income of a particular unit or property, the simplest and most cost efficient way would be to Refresh it instead of doing a complete renovation. You should take care not to overspend, and instead you should focus on Carpet Cleaning, Painting, Janitorial, and Refinishing the bathrooms and kitchens – all of which Refresh can do for you with one call! Essentially, that means avoiding style choices that may not fit everyone’s tastes. A fresh coat of paint, new lighting fixtures, and deep cleaning flooring are some of the most effective ways to update a unit and increase its value, while not costing you too much. If you are planning major renovations, try and focus on high traffic areas like the Kitchen, Bathroom, and living areas. Remember, your goal is to add as much value to the property as possible while minimizing the financial hit you will take.

 

Tip #4: Maintain the property regularly to avoid future complications

 

This next tip is actually great advice for all sorts of real estate investors. You should have any property you’re investing in inspected to uncover any major issues that may need costly repairs. On top of that, regular maintenance and inspection of a property will make sure any problems that do occur don’t spiral into larger, more complicated issues. As for multifamily properties, the units will experience regular wear as they’re occupied, so you should conduct move-in and move-out inspections to uncover any items that may need attention. Not only will this prevent more costly repairs down the line, but it also means you’ll have an easier time filling any vacancies, since great units will attract more tenants.

Connect with Refresh today to supplement your regular maintenance or to get those make ready’s turned faster and more cost effectively!

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Tips for Success to Motivate Property Managers

A property manager’s main role is as a tenant concierge.  Their job is multi-faceted but breaks down to the following:

Maintaining a safe and profitable asset

Safety is a concern of every good property manager.  How do you keep your tenants safe? The first step is keeping your property maintained and clean.  Dryer vents is a good example of this.

About five years ago, the National Fire Protection Association (NFPA) co-funded a study to measure how many fires in the United States begin with clothes dryers or washing machines. They looked at most major forms of housing: single family, multifamily, duplexes, condominiums, townhouses, apartments, and row housing, and what they found, in a nutshell, was the following:

  • The leading items first ignited in clothes dryer fires were dust, fiber, or lint (27%) and clothing (26%). In washing machine fires, the leading items first ignited were electrical wire or cable insulation (26%) and appliance housing or casing (24%).
  • Most of these home fires involved clothes dryers (92%).
  • The leading cause (31%) of home clothes dryer and washer fires was failure to clean.Refresh can make sure those dryer vents are clean so you can keep your properties safe and profitable. Refresh also offers janitorial services including a porter service to help with general cleanliness and safety. No one wants to deal with slip and fall law suits when you are trying to keep your properties profitable.

Maintaining every lease and the tenants’ satisfaction

Refresh can help here too! We can help you stay profitable and maintain leases and grow your retention without breaking the bank by refinishing your outdated countertops and cabinets, and repairing and refinishing your bat tubs and showers. We also do paint and Carpet cleaning as well, and you can schedule it all with one call, so you don’t have to spend all day trying to work with different service companies to get your make ready apartment turn list checked off. In fact, you can schedule it all online today in less than 5 minutes, and the turn around for job completion is faster than most make ready services as well, because we are able to create a work flow that makes sense and saves you time and money.

Maintaining accurate budgets for the building owners.

One more reason to hire Refresh, is we can do all of your apartment turn services through one company, so keeping track of the paperwork is a breeze.  You can always access your billing history through our online portal and all your makeready services for each unit can be on one bill instead of hundreds of bills.  We want to make your job easier, call us today!

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