Balancing your priorities as a building owner or manager is a constant challenge. Still, you’re always considering how you can increase your ROI and stay profitable while providing a quality rental space for your tenants.
Refreshing Common Areas
Most of the time, the cost for renovating the interior of an office, retail space, or apartment is built into either the exit fees for the previous tenant or is negotiated with the incoming tenant. This means your rental spaces are getting freshened up regularly. But what about your common areas? Simply put: the older the interior looks, the less tenants will pay to live in it. Why would they want to pay modern prices for a space that is still living in the ‘90s? Unless you’re rocking the retro vibe to good benefit, consider updating outdated furniture, artwork, and paint colors at least once a decade. The overhead can easily be integrated back into rental fees, so you’ll be able to charge higher rates long after the refurbishment has been paid for.
Furnish Your Spaces
Regardless of whether your property is office, residential, or shop space, you can potentially increase your ROI by furnishing the areas you lease out. For example, apartments with tables, couches, and even beds can attract a wider range of tenants, like those who don’t already have furniture or those who need only a short term lease, which you could charge more for. The same goes for office spaces—fill any conference rooms with tables and chairs, and the front of your office suites with customizable welcome kiosks. However, not every tenant will want their space to be furnished already, so this asset is something that you can offer to tenants at a higher monthly rate than those who want unfurnished spaces.
Update Appliances and Plumbing
Bathrooms are one of the primary ways we judge a space—just think about the last time you used the restroom in a restaurant. Make sure your bathrooms, both for public use and in your leased spaces, are up to date and functional. This applies to pipes and plumbing as well: check regularly for corrosion and have the pipes winterized every year to prevent costly accidents that minimize your ROI. Offices usually have common areas for workers to store and cook food, as do some retailers. While in some cases it may be the responsibility of the tenant to provide these appliances, if they happen to fall in your wheelhouse, see them as an opportunity. Though a brand new stove or refrigerator is an investment, you can increase rental fees once it’s installed. There’s also the added benefit of knowing no ancient machines with faulty wiring are causing a fire risk.
Outsource Your Maintenance and Cleaning Crew
A great way to boost the value of your property and raise your returns is by outsourcing your maintenance and cleaning crew. At Planned Companies, we work to hire, train, and educate employees so that our clients don’t have to worry about quality when they make a hire. We also take care of payroll and HR for all of our employees, which means lower taxes on our customer’s end and less work. Maintenance and cleaning done well can completely change the appearance of a building. Instead of hiring and managing a team on your own, consider outsourcing with a company that knows the ins and outs of property maintenance and cleaning. Of course, we have great security professionals as well if you’re looking to protect your building once you’ve spruced up its value. Contact us for more information!