When you become an apartment building investor, there are several strategies to utilize to increase profitability. Profit is the very reason you begin investing in apartments. A few days ago you received an email about controlling expenses, so let's look at a few tactics you might take to increase profitability by increasing income.

These are several simple, low cost strategies to increase or create income from your apartment investment. We'll cover a few in this article, but understand there are many strategies to take depending on the property and the market.

We'll start with the most obvious one first: rental income. As apartment investors most of us target properties with low rent because of the ability to rapidly increase income and property value. Low rent is usually a result of an apartment owner who "fell asleep at the wheel" or a property with a lot of deferred maintenance that cannot command top of the market rent. You can't let that happen to you. Keep track of comparable properties. Many apartment investors hire third party companies to complete rent comparable studies. Another option is to utilize the services of an apartment real estate agent. Increasing income just $10 per month on a 50 unit property means you add $500 per month to your bottom line. Don't underestimate the power of rent increases; just don't increase it so much that residents move out and, as a result, increase operating expenses more than it's worth.

Other apartment investing strategies to increase income include adding soda machines, laundry room (or owning the equipment), and renting out storage units or extra parking spaces. Many communities are passing on all or a portion of the utilities expense as well. You can even implement a payday program for residents who would prefer to pay every two weeks for added income or rent out computers, washer and dryer, or a television. Anything and everything you can do to increase revenue and resident retention will help improve your bottom line.

One of the greatest benefits to deploying these profit building strategies for your investment is forced appreciation. Because apartment buildings are valued based on the current and future income they produce, when you increase income and decrease expense you increase the value of your apartment investment.

Wish you all the success,

Steve Steadele

About Steve:

Steve Steadele, author of the book Multifamily Millionaire, is a successful Real Estate Investor, Broker, Entrepreneur and self-made millionaire. He is a featured speaker at Real Estate Investment Associations across the country where he shares his wealth of knowledge, experience and enthusiasm for the real estate industry. Today Steve specializes in the acquisition and disposition of investment real estate throughout the United States. To learn more about his products and services, visit his Web site at www.SteveSteadele.com.

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