REDUCING EXPENSES
Reduce water/sewer usage –Installation of low-flow toilets, shower heads, and sink aerators can reduce water consumption by more than 30%.
Simplify your landscaping –Install native plants that require less water, or remove plants altogether. Also, analyze your irrigation, timing, and usage. If your sprinklers turn on when it’s raining, it’s time to invest in a sensor.
Faster turnovers –How long do your units sit empty before they are ready for the next tenant? Putting an efficient system in place for turning units quickly can cut your vacancy in half. Set a protocol for exit walk-throughs with vacating tenants, schedule vendors in advance and keep them accountable, and allow new residents to move in early with pro-rated rent.
Install a recycling center –A designated place for recycling can reduce garbage pickups by 50%, and it reinforces the mind-set that residents can contribute to keeping the property clean and green. National DoorStep offers Mandate Complaint Turn-Key solutions.
Common area lighting and electricity –LED lighting has finally reached the point of affordability. LEDs consume a fraction of the power of traditional light bulbs, and they are built to last for decades. Automate them with sensors or timers, and watch your electric bill drop. Also, consider installing solar panels to offset your electricity costs.
Have your property taxes reassessed (if they are too high) –Contact a local real estate or tax attorney to find out if your property is a candidate for reassessment.
Have your insurance re-quoted –Have you taken steps to improve your property in other ways, such as installing a security system? You may have insurance discounts available to you.
Cable/internet/telecom agreements –Virtually everyone today requires internet access, and most residents pay for a cable or satellite bundle. Contact your local providers and find out if they will sell you a wholesale package that you can offer to your residents as an amenity. If the cost you pass-through to your tenants is less than what they would pay individually, you could make a profit and it’s still a win-win.
Keep in mind, that prospective renters still place the most weight on a base-rent to base-rent comparison, so be sure your marketing makes it easy to understand what features & amenities are included in the rent. In higher-end luxury buildings, tenants are less price-sensitive and prefer amenities over discounts.
Stay tuned for More On the Economics of Rental Retention and How Keeping Residents Happy Drives Profit. In Future Newsletters, we’ll break down more on the economics behind tenant retention and look at how applying strategies to reduce turnover will have a positive impact on your profits, operating budget, and long-term success as a rental property manager.
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