3 Effective Ways to Reposition Your Property for Maximum Returnsby Groot Ethkeens Real Estate Content Writer
Asset repositioning takes considerable planning, expertise, and investment. If you have a multifamily property, you should ideally segment the whole process into actionable steps such as market analysis, strategic planning, and implementation. All of these cumulative efforts eventually help to define the Unique Selling Proposition (USP) of your property. Properties that get worn down with time, often need a drastic makeover to sustain or increase their market value. Multifamily property owners often face situations such as losing tenancy, going over the budget, and project delay. In order to overcome these issues, it is ideal to consult a reputed asset repositioning contractor that has extensive knowledge and experience to effectively manage any asset repositioning project, and help you reap decent profits. Here are some ideas to turn your property around.
1. Cosmetic Alterations
Cosmetic alterations include superficial changes to enhance the aesthetic appeal of your property. This includes, but is not limited to landscaping, painting, relaying, fixing parking areas, changing or adding appropriate signage and any other changes to the interior and exterior finishes. Usually, this is the first strategy employed by property owners to have a dramatic impact on the tenant’s decision whether or not to rent the property and to justify its rental costs as it is one of the simplest and least invasive strategies.
2. Adding Amenities
Having nice amenities at your multi-family properties brings customers. Amenities also provide a pleasant living experience to the occupants improve retention. You can also increase supplementary revenue opportunities by providing value-added services including laundry rental, carports, and others. Another idea is to set up docking stations for electronics in all the units. This makes the occupants’ lives easier because they get a convenient place to plug in all their personal electronics such as cell phones and iPods. It may prove to be an excellent value addition to your multifamily property. Still, it is a relatively economical amenity compared to some others.
3. Structural Remodeling
This is the most time-consuming and thorough process of asset repositioning. Remodeling the structure of the property usually includes, but not limited to creating a new layout, constructing new amenities such as a swimming pool, or gymnasium, modifying the mechanical systems, adding porches and decks to available structures, and so on. Structural remodeling transforms a property to a large extent, eventually leading to better tenant occupancy.
Not every property will benefit equally from repositioning. You need to do your research and identify if the option works for your multifamily property. There is no doubt that asset repositioning can lead to an increase in income, a dip in expenses, adding appreciation to the property and ability to efficiently manage the property on the whole. If you keep your expectations realistic and formulate a strategy, improve the value of your property to increase cash flow from your property.
Created on Dec 31st 1969 18:00. Viewed 0 times.