A short YouTube video (Jonathan Cronin) providing quick, actionable ways to increase the value of large apartment buildings via boosting NOI: negotiate bulk utility/vendor contracts, add rentable storage/lockers, provide paid trash pickup or cleaning services, and optionally convert units to Airbnb (or master-lease them) to generate higher effective rents. Emphasizes speed and easy-to-implement operational changes.
Hey, what's up, guys? Today I want to talk to you about the three ways that you can quickly increase a property's value. And this is mainly regarding large apartment buildings and specifically a value add process where you're, you're renovating, you're increasing the rents to market rates and creating forced appreciation. Right? So we have a mastermind that helps people scale, scale in apartments. And we teach probably 50 different ways to, you know, basically the way apartments are valued, right. Is through the NOI divided by the cap rate. And so the noi is your net operating income. So we need to increase that noi. And when you do that is only two ways to do that. It's just increase income, decrease expenses. Right. But on the increase income, we're going to just give you our top three. If you're trying to quickly increase the value of the, of the apartment. Okay. And do it in a, you know, fastest relative. Right. I mean, everyone has a timeline, whether it's a year, whether it's two years, whether it's a few months, but these are things you can quickly knock out. Okay, so number one is going to be negotiate utilities and vendors. Okay? One cool trick that you can implement day one of buying an apartment complex or your investment property would be, you know, get with your cable, the cable company nearby, get with the Internet company, the electric company, you know, the insurance, even renters insurance. You can try to negotiate a bulk deal with the cable company or with the WI fi company. You can negotiate a bolt deal for your tenants and then, and then give even a portion of that to the tenants and give the tenants a good deal. So instead of having the tenants pay everything, you can negotiate a bulk deal and then have the tenants pay you. And you can make money off of that. Okay. And we can go deeper in that. You just reach out if you need to know more about that. But number two, something that's pretty, pretty needed. I mean, it's, it's, you know, when people are renting apartments, one of the big things they need is space, right? And so storage space. So one of the things that goes over really well is going to be adding lockers and storage areas. Okay. So if you have any extra room in your apartment, you know, you can easily put lockers and rent those lockers out or, you know, or large bins or storage area. Okay? So that's number two. And I actually may even have a bonus here that I want to give you. But number three would be trash pickup. You could offer trash pickup services, leave your trash at the door we'll pick it up. I mean, you may want to add that as just a value add. And then you. It'll kind of help you justify getting the rents up a little bit higher to market rates. Right? But, but offering trash pickup or even offering cleaning services, you could, you could have, you know, if you have a. That's why we teach about having big enough apartment complexes that you can have a nice management company in there, but if you already have staff, then you can easily implement a cleaning service, you know, for a fee, we'll come in and clean your apartment for you, you know, on a weekly basis or monthly, whatever you want to do. And that also, the cool thing about that, it also gives you the ability to see what's going on in the, in the units. Okay. And then I want to give you a bonus. Number four is, would be Airbnb. Airbnb. Some of the units or a lot of them, we actually just uploaded in our mastermind, uploaded a whole training on that. And we're actually going deeper in that in the coming few weeks and months. But implementing Airbnb is a very good option. There's a couple things to note. One is that it's not necessarily considered in terms of the appraisal, in terms of the valuation. It's not considered income, at least not, you know, unless things have changed recently. It's not considered income because it's just a new vehicle. It's not whatever. So one way you want to get around that, it would be creating a master lease for their units. And basically, you know, rent. Use a company that's doing Airbnb but rents it long term as a regular rent, you can increase the rents there, right? And then, you know, with Airbnb, the main thing here is the cool. One of the fun things about that is you can use whenever no one's staying in the Airbnb, you can use it as a show unit. Right? You can have tenants come through and potential tenants looking at the property, looking at potentially moving in. You can show them one of the example Airbnb that's already set up. So I hope that helps. There's. Those are, you know, three, four of our favorite ways to do it. And there's a thousand things you can do, whether it's putting dog parks in, whether it's, you know what. There's all kinds of things you can add to basically generate income as well as improve the value to the tenants that you can get a higher rate, higher rent. So that's all I have for you today. Hope that gives you some value. Let us know if there's other things you'd like to get tips on, get tricks on, and we'd love to make videos about that. So have a wonderful day.
