How To Maximize The Revenue Of Your Multifamily Property

When you buy a multifamily for sale in North Carolina (NC), it is important to maximize revenue. The way to increase the value of your property is to either decrease the expenses or increase the income. The net operating income is an important metric when it comes to analyzing the value of your property. Read on as I talk about the top-of-the-line investment and how to increase the revenue of your property.

Extra revenue in your parking lot

The parking lot might be leased out but the parking spaces are not fully occupied all the time especially when people are working. There are companies out there trying to get parking by getting into Airbnb. These companies will put their software and phone apps into place at no cost to landlords. They will then profit-share any additional revenue they generate.

Master leasing for rentals in the short term

Representatives of cities and landlords have been vocal about their disappointment in Airbnb. In some states and cities, hosts must register with the city to have listings. A lot of landlords have discovered that renting out apartments on Airbnb and other types of services violates the lease of the renter and is against the policies.

Companies are now starting to act as middlemen – they will master lease one or several units in property and handle all the licensing and registration and run an operation similar to Airbnb from the multifamily for sale.

The landlord will benefit from this arrangement because in most cases, the company can pay higher rents compared to the market rates or even have a profit-sharing agreement where landlords can make up to 40% more than what they make from a traditional lease over the year.

Outsourcing amenities

Owners can contract with different companies to add to their current package. In some cases, you benefit directly and other times you can charge higher rent because you have amenities that give you a competitive advantage. E.g., onsite dry cleaning. A company can put lockers in your building so that residents can drop off their laundry and pick it up in the building and it is all handled through an application.

Co-living

Affordability becomes a bigger problem, especially in the major cities. This has made co-living to become a viable concept. While property renters enjoy paying cheaper rent, landlords enjoy higher prices per square foot.

Using AI and machine learning for better pricing

Sometimes, additional revenue isn’t only about raising your rent to the right level. It can involve lowering your rent to the right level. You might be considering upgrading a unit but you just cannot determine how much extra rent you will get after the upgrade. Most people rely on their own intuition and experience.

However, if you want your multifamily for sale NC to generate more money, you should work with companies that use machine learning and data analytics to predict everything for you and show you what you should do. This will help you make informed decisions.