MULTIFAMILY OWNERS: Make more from your property

Does it feel like your multifamily income has grown stagnant? 

Whether you’re running a single-family property or managing an entire portfolio of apartments, everyone’s feeling the pinch these days. 

Multifamily owners are seeing higher costs for utilities, maintenance, insurance, pest control, marketing, and more. The rent checks continue to come in each month, but the money just doesn’t go as far as it used to. Spooked by their own financial crisis, some commercial investors have even put their dreams of expansion on hold. 

You can’t control the economy, you can’t set vendors’ rates, and you can’t justify a massive rent increase “just because.”  

So, what’s a desperate landlord to do? 

Turn to your friends at Everest, of course! 

Check out our philosophy. 

Money doesn’t grow on multifamilies

Sitting around passively waiting for an economic miracle is only going to further delay your investment potential. If your commercial property is not generating the revenue you need for financial prosperity and future growth, it’s time to do something about it!

You’ve got nothing to lose. 

There are lots of inventive ways you can make more money from your rental property on top of monthly rents. It just takes time, research, and inspiration from some of the more visionary landlords out there today. And while some solutions will cost you money up front, others only require a little creative savvy. 

This month, we’ve consulted with Everest loan officer Eli Wohlberg to discuss some of the best ways landlords can tap into secondary revenue streams in 2024. Many of the following ideas will not only line your pockets, but also enrich the lives of your residents for years to come. 

Have you tried any of these hacks before? Did any of them surprise you? 

We’d love to know!

Get in touch with your Everest contact soon to discuss multifamily revenue strategy, new investment opportunities, and more. 

5 Ways to Create New Revenue from Your Multifamily

Invest in renovations

When the economy is down, instinct may tell you to hold tight to your wallet. But in reality, now is a great time to invest in upgrades to your building (assuming you can swing it). Even a small renovation project can make a huge difference in your rental income potential. 

Mr. Wohlberg explains, “So many multifamily owners see their rents go stagnant because they never improve their units. Investing in an updated kitchen, modern bathroom, better lighting, new flooring, nicer windows, or just a fresh coat of paint can transform a space and help justify a sizable rent increase.” 

Rent basement storage

Maybe you’ve already modernized your units, or you don’t have a ton of liquid cash to put towards a renovation project. In that case, look around your building for unused space. People living in apartments routinely report a desire for more storage—and the majority of them are willing to pay a premium for a place to stow their stuff. 

“Renting out a basement is great for storage purposes. I actually know of a client who owns a large grocery store and uses the basement for his renters’ storage,” says Mr. Wohlberg. “Tenants may want a convenient place to store their bike, moped, scooter, baby stroller, unused furniture, or even spare boxes and luggage. Charging a monthly access fee is a savvy way to generate new revenue.” 

Shop around for insurance and vendors

Why is it that so many of us accept service providers’ charges without question? Landlords receive so many invoices each month and just passively pay them. But the smartest investors out there know that everything is negotiable. 

Mr. Wohlberg advises, “For starters, shopping for a cheaper insurance policy is an excellent way to lower expenses and increase revenue. Better options are out there, but you have to take the time to shop around. From there, consider calling your trash removal, pest control, cleaners, ground maintenance, leasing, marketing, and other service providers to negotiate a lower rate. Even if the answer is ‘no,’ some providers may share some cost-cutting ideas you haven’t thought of.” 

Implement new leasing policies

You’d be surprised at how much revenue multifamily owners lose each year due to vacancies. If your building has a disorganized leasing program, you can expect to incur missed rents and other ancillary tenant charges. With today’s solid rents and strong rental market across the Northeast, you have to take full advantage!

Mr. Wohlberg explains, “Take a second look at your leasing policies to ensure things are smooth and streamlined. For instance, smart landlords stagger their lease expiration dates to keep vacancies to a minimum. You can also make it a point to contact residents 60 days prior to lease expiration to ensure seamless turnover. Being organized and proactive is key.” 

Charge for amenities

Are you currently charging for those ‘extra’ perks and services tenants enjoy? Or, have you considered adding new amenities to your building in order to bring in additional revenue? From vending machines to onsite laundry, you don’t always need a ton of space to implement a lucrative amenities program. 

“Multifamily owners routinely charge for parking, whole building Wi-Fi access, recycling programs, concierge services, package storage, pet rent, and more,” notes Mr. Wohlberg. “And on the other end of the spectrum, don’t forget about late rent and NSF fees. Landlords should be fairly compensated for the time and hassle of hunting down delinquent payments.” 

Everest says: you may be sitting on 

a multifamily gold mine! 

Since 2004

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Our Commercial Partners

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Connect today to explore creative financing solutions!