Multi-family New Jersey properties are excellent investment options. Renting out a multi-family home instead of a single-family home helps you to protect yourself against vacancy, because losing just one tenant doesn’t completely wipe away your cash flow or your rental income. You can also deliver maintenance more cost-effectively; your per-unit repair costs will be much lower.
We work with a lot of owners and investors in New Jersey who rent out multi-family properties, and we know that it can really help to build an investment portfolio. Make sure you can accurately analyze the return you’re earning on these rental homes.
Maintaining Your Multi-Family Investments
It’s important to look at multi-family properties from the perspective of a long-term investor. You’re not going to make a lot of money from a handful of units or a small apartment building overnight. You need to preserve its condition in order to increase its value over time.
Preventative maintenance strategies can help you achieve this goal. Doing nothing to protect and preserve the value of your asset is one option, but taking impactful and intentional steps to keep the condition of your home intact and even improving will help you earn more ROI.
Make sure you respond to every maintenance request with a sense of urgency, even if it’s something simple and routine. Pay attention to annual and seasonal maintenance issues. Care for the roof, clean out the gutters, check your landscaping, and keep up with pest control and HVAC servicing.
Focus on Cost Effective Improvements
Keeping your investment properties updated and modern will also help you increase your ROI. Take a look at the parking area and ensure there is enough parking for your residents and their visitors. Common areas need to be constantly evaluated, cleaned, and updated. Laundry rooms, elevators, pools, and courtyard spaces need ongoing attention if you want to earn money on your multi-family property.
Make cost effective updates that will help you charge more rent. For example, a washer and dryer in each unit will raise your rental value. Energy-efficient appliances are also good at attracting better tenants and increasing rents. Embrace technology. If you include free internet access or offer high-speed smart-home capabilities, you’ll be able to charge more.
Get to Know the Local New Jersey Rental Market
There are several micro-markets throughout New Jersey. To accurately analyze your returns and increase your rental value, it’s important to understand the market trends and tenant demands. You need to know your competition and understand the nuances of the properties that are renting.
Make sure your property is meeting and exceeding what other properties can provide. If you’re not already allowing pets, consider accepting dogs and cats. You can charge a pet fee or monthly pet rent, which is an easy way to increase earnings and protect yourself from liability.
Think about amenities as well. If your competing multi-family properties are providing pools, game rooms, community centers, and tennis, you might think about what you can provide. There’s no need to do a complete renovation, but even installing a basketball court can help. Pay attention to landscaping and curb appeal. Power washing and painting the exterior of the building can make a difference.
If you need help analyzing what your multi-family property can earn, contact us at KeyVest LLC. We’d be happy to tell you more about your property’s potential.