Increase Values | NOI
Add value by providing amazing amenities & services to your Tenants!
- Do you want to increase property values? NOI?
- Do you want to gain an edge over your competitors?
- Are you a smart, out-of-the-box thinker who recognizes value-trends?
Forced Appreciation: This is the secret sauce for creating long-term real estate wealth. It is the increase in value through actions taken by the owners or managers. This occurs when managers can force an increase in net operating income (NOI) by increasing revenue, decreasing expenses or both.
For instance, adding amenities, capital improvements and steadily raising rents all increase NOI. By increasing the NOI, the value of the property is “forced” to increase exponentially.
These types of amenities are increasingly standard offerings at high-end properties, but managers can incorporate them in smaller and older buildings as well. They have the added benefit of being amenities that tenants enjoy but still feel like a deal compared to rent prices on higher-end units.
Increasing the value and benefits for the residents brings more rental income and consequently increases value.
Recognize the Trends
DO YOU WANT TO PROVIDE A FANTASTIC SERVICE TO YOUR TENANTS?
If you are a smart and confident management company or apartment manager, you must recognize "trends" in society. Recognizing trends always leads to better opportunities and increased value into what you do. In this case, recognizing the trends will make your properties more valuable, increase revenues, get a jump on the competition, and you can leverage the trends to market your properties accordingly.
The trends that we are talking about are :
1. Multi-family residential homes (apartments) will be increasingly important in the future and will be a better decision than purchasing single-family homes, leading to an increased number of tenants in the marketplace, tenants who expect services and amenities as part of their rental*.
2. People want to save time and to be serviced. People are willing to pay for convenience and peace of mind. They want easy-access to someone who can help them with whatever they need. Someone they can trust and rely on. Someone like a personal assistant.
3. People want to feel like they are part of the "1%". People want to have access to those services which wealthy individuals enjoy on a regular basis, like a personal assistant.
*According to Buildium’s 2017 American Renter's Report, 55% of tenants valued amenities as a top-reason in choosing a place to live.
- * On an independent survey that OpulentVIP conducted between 2010 and 2015 of over 3,000 tenants,97% responded that they would use concierge and personal assistant services, should the apartment offer them as a fully or partially-paid service or amenity; 88% responded that they would continue their lease with the apartment should those services be available to them, even if they had to pay up to 10% additional rent.
