The How
Real Estate is unique but all properties share similar characteristics that the maximizing strategies can be applied to.
Over 300 efficiency items have been identified that can be worked to improve a property's profitability. These items range from simple (5 to 10 Steps) to extremely complex (thousands of steps). The more complex efficiency items generally return higher dollars but at lower multiples than simpler inexpensive items.
Starting place
Inefficiencies become apparent by evaluating the current numbers on both the top and bottom line of the properties income statement. An analysis of the physical property itself will yield if the property is being used to its highest and best potential. Each property has hundreds of items that can be improved upon to increase both income and value.
Examples of the How
Economies of Scale
Larger multifamily properties have a significant advantage over smaller properties. This only happens through applying Economies of Scale. If this strategy is applied, costs of labor and materials will be significantly lower across the board. Interestingly though, this does not happen on its own. In order for it to be achieved it has to be properly recognized, negotiated and implemented.
Online Presence
An online strategy is vital to a successful property today. Advertising, Social Media and a continuously updated Search Engine Optimized Website are a must. Negative Reviews can destroy a properties reputation and earning potential. Alternatively positive reviews have significant upside.