Multifamily property investments are a great alternative that is highly suitable, especially since it helps you to spread out the risk while getting as much investment capital as possible. Scaling-up in multi-family property investments is quite easy due to the ready availability of capital and real estate investment ideas. Maximizing your returns in such a setting requires you to focus on four key areas.
Pricing property appropriately
The first way to get the most out of your multifamily property investment is to carefully consider the monthly rent you charge for your units. As a landlord, you should take into consideration several factors when setting the rent price, including the average market rates, location of the premises, condition of the units, and availability of additional amenities in the area. Setting a fair property rental price and gradually increasing the rent at a rate of 1-3 percent each year helps your investment to rake in more returns.
Undertake preventive maintenance
After the construction of your units, it is important to consider investing in regular preventive maintenance of the houses to maintain them in a pristine condition. The maintenance should focus on fixing common repetitive issues such as repainting the house, replacing the roof and ceiling, and ensuring connectivity to utilities, such as water, gas, and electricity.
Securing the right insurance
Your premises should be appropriately insured against common risks, including environmental hazards, such as earthquakes and hurricanes. When securing the insurance for your premises, you should ensure that you’re not overcharged. You may also take advantage of your multiple properties to get a bundled offer at a highly discounted price. You may also have to shop around for multiple quotes from different insurers and go for the one that fits within your budget.
Work with professional marketers
A common feature in real estate marketing today is taking photographs and using multiple web platforms for marketing. When taking such photographs for marketing purposes, impressions do greatly matter in determining whether you will attract potential tenants or not. To increase your chances of generating more leads in real estate marketing, you may have to hire professional photographers to shoot great photos and even take a 3D visual tour of your properties. Potential clients get impressed by the high-resolution first impression created by great photography.