A great way to add value to a property is by extending good will to your tenants. One way that we do that is by “rewarding” our tenants during annual increases. During annual increases we will look at enhance the unit in a small way.
Examples have been a new stove, new range hood, new sink, faucet. We even gave a newly married couple a new front door because their door was all banged up and rotted.
Not only does this add value to YOUR property, it makes the tenant feel as though you care about your property by upgrading it and give the tenant the message that they too need to care about your property, which in turns adds value to YOUR property.
Especially with non rent controlled buildings, when we increase rent and as long as the market is the way it is with rents increasing we need to stay in line with the market, giving the tenants some minor upgrades to their unit is a great ROI for our owners.
We are reasonable with our tenants, we don’t give them anything they ask for. We want to keep good tenants so we work out deals with them so it is fair for them and fair for us.
For good tenants, we can offer reasonable improvements to their homes each time they get a rental increase. We have found that this is a great way to build value for the units, keep good tenants happy and add value to the owners’ assets.