Quick Eats & Quick Returns
Money can be incredibly easy to grow if you already have some and know how to invest it. As a residential management company, you have a business. As a business, you have a product. Your product is your property. Like any business, if you want to grow and invest with knowledge, it is best to look at the numbers.
The National Multifamily Housing Council, in partnership with Kingsley Associates, ran a multi-year survey of over 500,000 residents across the United States, beginning back in 2013. With such a wide data pool, these statistics can generally apply. And with the survey conducted across years, data trends are able to emerge. The survey asked about residents’ interest in various amenities and what they would expect to pay for such a thing to be provided. A look at the data reveals various strategies for how a landlord could invest.
For a washer/dryer in the apartment, a renter would pay an extra $64 a month. That’s a decent sounding return, but installation of such amenities can cost up to $1250 on average and often even more.
So are there amenities that renters are really interested in that they’ll also pay well for? A parking space is of interest to 94% (and growing) of residents. That’s a lot of interest and trending, but with an expected price increase of only $32, the return may not ever pay off the investment.
However, microwaves, as ridiculously easy as they are, are of interest to 87% (and growing) of residents who would pay a rent increase of $21 for one in their home. An investment of only a couple hundred dollars toward parts and installation can recoup costs in only a few months before the money becomes simple profit. As quick as a renter can can nuke their breakfast, you can increase your income.
Money doesn’t grow on trees; it grows on other money. See what the data tells you, use the knowledge to make a strategy, and then set it for two minutes. Please allow contents to cool before eating.