You get the idea. The property itself should be showing you the money If you aren’t seeing increased income potential around almost every corner, you’re not looking very hard-or there may not be much. If it’s the latter, you may want to consider another property alternative.
Your team members should be active participants in your mission of finding income-generating or expense-saving opportunities. They will see things you don’t see. If you think there is no creativity in this business, you are dead wrong. I have more fun walking properties with my team and just exploring the possibilities. Remember, that’s how money is made-when you and your team see things other people don’t see and then capitalize on them.
At this point, your job is to ask "what if?" And with every "what if," enter the numbers into the budget and see how the bottom line shapes up. Here are a few what if’s you should be asking of the properties you are considering:
- What if I increase the rents?
- Will it create more vacancy?
- How quickly will I rent the unit if someone moves out?
- Can I test it on vacant units before issuing increases to existing residents?
- What is the market rent in the area and are my rents in line with the market?
- What if I need to attract new residents?
As you can see, there are lots of ways to increase income and reduce expenses. It just takes looking at the property and seeing the opportunities, understanding the residents‘ needs, and creatively coming up with solutions.