For many small to midsized apartment owners, rent collections are requiring more effort, expenses are rising and many of the traditional methods of maintaining rental income are off-limits due to governmental restrictions.  Although maximizing a rental property’s cashflow is a priority in normal times, it is even more important post-COVID – where every dollar counts.  The following three strategies can help maximize your property cashflow and improve your bottom line.

Interior and Common Area Upgrades

The most common way to increase property cashflow is through property renovations which lead to higher achieved rents.  With more residents working from home, upgraded interiors are in very high-demand – the result is lower vacancy downtime and increased rents.  Common area improvements such as patio sitting areas and landscaping improvements have also garnered high praise from home-bound residents.  

For interior improvements, focus areas should include kitchens, baths, lighting and paint schemes.  Generally, renters are looking for contemporary design elements that project a modern lifestyle.  Bright and airy finishes are preferred over dark colors and stained wood cabinetry.

Operational Efficiencies

As renters have spent more time at home, there have been increased pressure on building services including trash containment, common area water, electricity, cleaning and pest control.  To combat these extra costs, many landlords are now launching ratio utility billing system (RUBS) programs that allow an owner to recoup a large portion of property water, sewer and trash service bills.

Leveraging technology to simplify property management tasks has also become more important than ever. There are numerous online platforms that automate maintenance requests, streamline rent collections and even provide opportunities for additional ancillary revenue sources. 

Ancillary Revenue Sources

As apartment owners emerge from the pandemic, ancillary revenue opportunities are proving invaluable to maximizing property cashflow.  Success in the implementation of any ancillary revenue program relies on clear expectation communications between landlord and residents.

Ancillary revenue ideas include: 1) onsite storage lockers 2) paid parking 3) vending and laundry machines and 4) exclusive telecommunication vendor agreements. While these are some of the most obvious possibilities, it is vitally important to gauge demand for any offerings through market and resident specific surveys.

By following the above techniques, you’ll maximize property cashflow and most importantly ensure resident satisfaction – a true win-win.