While raising rents and reducing operating expenses is the generic answer to generate increased NOI., there is more than meets the eye. At Block Multifamily Group, our focus on increasing value for the investor starts on the first day we're contacted to manage an asset. With the strength of our overall corporate structure, we are able to utilize:
- Block Maintenance Solutions to review maintenance procedures and implement new and cost saving ideas for ownership.
- Block Technology Solutions to review the managed property’s network and implement efficiencies.
- Block Multifamily Group Sustainability programs, initiate utility audit programs which will improve utility utilization.
- Raising rents $15 on a 200 unit property is increasing the income by $36,000, most of that additional revenue drops to the NOI line, equating additional value
- Focusing on Resident Renewals. At all times, the existing customer you have is the most important. The cost of a Resident Turnover is $1,000 or greater. Reducing that cost will increase the NOI, which equals greater asset value. If a 200 unit property has 40% turnover or 80 move outs, ($80,000 in turnover costs), it’s apparent what a 20% or 30% reduction in this area will do to the NOI.)
- Rent maximization by unit, location, and amenity is paramount for generating increased revenue on a monthly basis. Such items as apartment location, view, amenity (fireplace, etc.) will add to the revenue line, and subsequently will fall to the NOI line
- Switching owner paid utilities to resident paid utilities. Ie., trash pick-up, water and sewer charges.
- Adding vending and related items generate additional income.
Bill Larson, CPM
Block Real Estate Services, LLC