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Sep 20, 2022 Michael DiMella

Uncovering Less-Than-Obvious Multifamily Value-Add Opportunities

It was sweet while it lasted!

But with slowing organic rent growth and rising interest rates, the days of cap rate compression driving multifamily investment returns are over.

Question: How can you make sure your multifamily investment pays off over the next three to five years?

Answer: Uncover the value-add opportunities.

Seems obvious, right?

But value-add is so much more than cosmetic renovations and CAPEX improvements.

Here's how to increase NOI without major capital investments

#1) Reduce Bloat

Too many operators have gotten fat and happy on rising rents and shrinking cap rates. Start by understanding your market and target resident demographics to establish a strategic management plan and holistic goals. Cut out services & amenities that don’t add real value, drive rents, or increase resident happiness.

Tip: Not sure which ones don’t add value? Ask your residents.

#2) Get Rid of Your On-Site Leasing Team

Why are you burning cash-paying leasing salaries? Hire a professional leasing team that can accelerate your leasing at a much lower cost on a fractional basis.

Tip: That entry-level leasing associate hoping to be a property manager someday isn’t a salesperson anyway.

#3) Leverage a Modern Marketing Plan

The goal of marketing is to create awareness, generate real demand, and accelerate leases at stronger rents. I’ve seen way too many “set it and forget it” marketing plans that are wholly ineffective. This ain’t an infomercial, folks. And it’s not about vanity metrics like impressions and leads. It’s all about closed leases.

Tip: Modern marketing starts with great positioning to differentiate your property and create demand from the residents willing to pay for a home that truly meets their needs.

➡ 𝘕𝘦𝘦𝘥 𝘮𝘰𝘳𝘦 𝘴𝘱𝘦𝘤𝘪𝘧𝘪𝘤 𝘪𝘯𝘴𝘪𝘨𝘩𝘵𝘴?

CHARLESGATE is your secret weapon to help you identify, underwrite, and operate deals other investors can’t. Connect to have us take a deep-dive consultation to review your current property or portfolio for opportunities.

P.s. We're launching a TikTok soon! Follow us on TikTok at @charlesgaterealty

Published by Michael DiMella September 20, 2022