Ever ask yourself why your getting outbid on deals? If you brought a handful of syndicators to a property each of them would come up with a different valuation. Why is that? This is because each syndicator will come up with a different business plan for the property.  There are many ways to add value on a property and the best syndicators are able to do just that in the most effective ways, ultimately creating higher valuations.

Both, passive and active investors need to be aware of these ways to add value.

For active investors it is very important because this is your opportunity to be creative and think outside the box compared to the traditional investor. If you are able to find value plays that either increase your income or reduce expenses you will be able to beat out your competitor(s) that are also looking at that property.

For passive investors, it is also important to be aware of these ways to add value.  On paper, a business plan you receive from a syndicator may look great. However, if a syndicator is planning on installing granite countertops or real hard wood flooring in a C class asset you should have a red flag go off knowing this value add play maybe isn’t the best choice.

Understanding how a syndicator adds value in an apartment community will empower you to make the best decision when investing.

INTERIOR OPPORTUNITIES

1. Light Fixtures: Upgrade light fixtures will add a modern look to the property and freshen up your apartment. Installing LED bulbs can help reduce expenses on electricity as well.

2. Upgraded Appliances: For units that have already been turned or appliances have been replaced charge a premium for these specific units.

3. Full Appliance Upgrade: Add stainless steel microwave, fridge, dishwasher, and stove to units to achieve a rental premium.

4. Washer / Dryer: Install a washer and dryer into a number of units add charge a monthly fee for them.

5. Hardware: Install new hardware such as handles on cabinets, shower head, sink, toilet, and doors.

6. Flooring: Remove carpet and instal faux hardwood vinyl flooring not only aesthetic to the eye but will save on costs when turning a unit.

7. AirBnB: Adding short term leases is a great way to increase your NOI if your market has a demand for it.

8. Extra Rooms: Adding an addition onto smaller units or adding walls to larger ones that do not rent well is a great way increase occupancy and income.

9. Ration Utility Billing System (RUBS): Implementing a RUBS program allow you to bill back a portion of gas, trash, electric, and water to the residents.

10. Pet Fees: Charge a one-time non refundable pet fee along with a monthly fee for each pet your resident may have.

EXTERIOR OPPORTUNITIES

11. Parking: Yes. Residents will pay for preferred or VIP parking spaces.

12. Car Ports: Build a limited amount of car ports and charge a monthly or yearly fee.

13. Dog Park: This isn’t typically charged as a monthly or yearly fee but rather built into the rents. It is an excellent way for pet lovers to build friendships/community in the apartment complex.

14. Washer / Dryer: If there was not an opportunity to add them into the units you can add them in a building or build a dedicated laundry facility on the complex.

15. Vending Machine: Buying or rent machines and add them to common areas.

16. Storage Locker: Add them in the clubhouse and charge a monthly fee.

17. Fitness Center: These are major selling points for residents. Updating or building a fitness center and offering classes is a great way to get residents together and building a strong community.

18. After School Program: This will typically help attract more families to rent at your apartment complex. You can also add a daycare program.

19. Patios & Balconies: Charge a rental premium for these featured units.

20. Fenced in Yards: Building a fence around a patio to increase privacy on a number of units and charging a premium is an inexpensive way to generate a great return.

21. Billboard: Depending on your location, building a sport for billboards and leasing it out to business can generate some great income.

22. Tech Package: Adding free WIFI to common areas and USB charging ports are a millennials dream. You can also add a service where they get instant mobile updates on package arrivals.

There are a lot more ways to add value to an apartment complex and would love to hear some of your favorite ways in the comments section.

Keeping this list handy as an active investor will allow you to quickly see what other apartment complexes in the area have while evaluating your current opportunity.

If you prefer to be a passive investor study this list so your able to be an expert when evaluating the next deal that comes your way to invest in.