Owners and rental property management companies can increase their net operating income with a number of steps, according to industry executive Lee Harris and other panelists at the recent Apartment Finance Today conference.
Experts say that dealing with dissatisfied residents promptly and minimizing apartment turnover can increase NOI significantly, Multifamily Executive reports. Tenant satisfaction can be gauged and practices adjusted with the use of surveys 30 days after move-in and 120 days away from renewal to improve communication. Improving occupancy by 1 percent can be worth as much as $100,000 in value, they noted.
Making strong use of inexpensive technological resources, such as Craigslist postings, may improve efficiency. They also recommend establishing a strategic social media plan and a resident referral option, focusing efforts on current tenants.
Raising rents between 3 and 5 percent can lead to a 5 percent value increase, and keeping current tenants happy can provide the leverage to make such an increase stick without occupancy rates suffering. Pricing units can be done individually, according to one panelist, factoring in the view and other factors to arrive at suitable rent levels.