As a property manager, there are several ways to increase your ROI on multifamily investments. However, there are four, in our eyes, that can truly make a difference if you learn to practice them daily.
#1. You Should Properly Vet Potential Residents and Tenants.
You can prevent a lot of collection losses and turnover just by having processes in place that allow you to properly vet residents and tenants. Property managers can take advantage of third-party services, such as Yardi, to do this vetting successfully. Late fees and turnover simply lead to more tasks and less time. You can mitigate these tasks by starting the vetting process off with a checklist. The more time you can devote to the property, the less debt and collection loss you will have. This means you can sell the property at a higher price than you bought it at, which increases your ROI.
#2. You Should Consistently Make Competitive Bids.
There are several aspects to a multifamily property that can benefit from a property manager making competitive bids. A great example is property insurance. Simply by calling around and comparing average costs to your current costs, you can work a deal to lower your premiums to the market average.
Another example is landscaping. How well-manicured a place is can mean a lot to tenants and residents. Property managers can increase the ROI by leveraging their relationships with local vendors and relationships to get better deals. Being able to leverage these relationships and find good competitive bids is also a great way to stand out as a property manager and get hired by investors from other states.
#3. You Should Do Your Market Research and Use It.
A good property manager understands what other multifamily properties are offering. Keeping the owner and investors informed with what’s happening in the market will help update the property and, therefore, increase the ROI. For example, many newer multifamily complexes have dog washing stations. You could suggest this to your client to help both of you receive a better return.
It’s also important to understand the local demographic. Knowing the people that will rent out spots in a multifamily property will help the investor or owner understand what should be offered and what kind of residents to expect.
#4. You Should Provide Monthly Reporting.
Budget reporting and analyzing that budget throughout the year can help you keep a handle on the overall budget, as well as see where expenses are too high. It’s a great snapshot of what the property is worth today. Giving month-to-month feedback to the owner or investor can help increase ROI by keeping track of where money is being put into the property.
It’s important to remember that investors and owners expect you to get in the weeds and tell them what the issues are. Property managers will see better success by following these four tips.
Power of the Plus
Beck Partners has four experienced property managers, two full-time CPAs, and covers both commercial and multifamily properties. The Beck value is sourced from its people. We aren’t looking to put band-aids on things. Issues in property management are inevitable; it’s how a property manager responds that will make or break them.
Beck Partners not only provides you with a full scope of services covering Commercial Real Estate, Insurance and Property Management, but we give you the Power of the Plus: a wealth of business expertise. From the little questions to the most important decisions facing your business, Beck can lend you the advice you need to travel along a path of exponential growth.
Our difference is immeasurable. We go far beyond sending you a helpful email. You will have everything you need to meet your business goals within one, valuable partnership with Beck. From your leasing to your personal insurance, you will be covered every step of the way, including on-hand advice from experts who have been in your shoes.
Don’t wait. Get the Power of the Plus on your side with a simple phone call. For more information, you can reach out to Chris Cobb, a Beck Partners Associate, at (850) 477-7044 or via email [email protected].