{"id":734,"date":"2017-02-11T10:42:36","date_gmt":"2017-02-11T10:42:36","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/how-smart-investors-increase-their-roi\/"},"modified":"2019-10-27T15:48:48","modified_gmt":"2019-10-27T15:48:48","slug":"how-smart-investors-increase-their-roi","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/how-smart-investors-increase-their-roi\/","title":{"rendered":"How Smart Investors Increase Their ROI"},"content":{"rendered":"

Investing in real estate<\/a> is not complicated.<\/span>\u00a0 <\/span>All you need to do is find the right property for the right price, keep it occupied and well-maintained.<\/span>\u00a0 <\/span>Sounds simple enough, but when push comes to shove very few investors are aware of the \u2018secrets\u2019 which can increase the value of their properties in a matter of days, not months.<\/span>\u00a0 <\/span>With that in mind, I wanted to run through how smart investors increase their ROI<\/strong>.<\/span>\u00a0 <\/span>These are simple steps which can help any investor, be it commercial or residential, increase what their properties are worth.<\/span><\/p>\n

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1)\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><\/strong>Subdivide It<\/span><\/strong><\/p>\n

This is one of the oldest tricks in the <\/span>real estate<\/a> investors playbook<\/span>.\u00a0 <\/span>Whenever possible look for opportunities to divide larger spaces into smaller units.\u00a0 <\/span>Not only does this reduce your risk if the larger unit is unoccupied but it also gives you a chance to increase the monthly base rent for the property.\u00a0 <\/span><\/span><\/p>\n

In the case of commercial properties, this can be as simple as putting up a diving wall and installing a separate electrical meter.\u00a0 <\/span>For residential properties, this will include building out a new kitchen & bathroom.\u00a0 <\/span><\/span><\/p>\n

Here\u2019s the payoff.\u00a0 <\/span>Imagine you had a two-family home and you were collecting $2,000 per month in rent.\u00a0 <\/span>Now imagine you added a studio apartment \u2013 either in the garage, or \u2018carriage house\u2019, or as an <\/span>in-law apartment<\/span>.\u00a0 <\/span>While you might not be able to get $1,000 for the additional apartment, you could charge $600 or more.\u00a0 <\/span>This would net you a 30% increase in rent without needing to raise rents.\u00a0\u00a0 <\/span><\/span><\/p>\n

2)\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><\/strong>Pave<\/span><\/strong> It<\/span><\/strong><\/p>\n

I am sure you have heard of curb appeal.\u00a0 <\/span>Did you know that making sure your driveway or parking lot is in good condition will not only make your property seem more appealing but it could add 5% to 10% to its value?<\/span>And it turns out this simple trick which can be done in a week or less.\u00a0 <\/span><\/span><\/p>\n

Maybe you just need to reseal your driveway, or maybe you have commercial property that needs a new driveway.\u00a0 <\/span>Either way, <\/span>paving upgrades create value<\/span> and this leads to a higher ROI<\/strong> for real estate investors.\u00a0 <\/span>Getting started is rather simple as well.\u00a0 <\/span>All you need to is find a quality paver your area and work out the details with them.<\/span><\/p>\n

3)\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><\/strong>Efficiency Matters<\/span><\/strong><\/p>\n

We have looked at a simple way to increase rental income<\/a> without increasing rents and how minor improvements will help to increase the value of your property.\u00a0 <\/span>But another way that smart investors increase their ROI<\/strong> is by looking at how they can <\/span>improve efficiency<\/span>.\u00a0 <\/span>This is not limited to energy<\/a> efficiency, though this plays a big part, it also includes looking other aspects of operational efficiency and better cash flow management.<\/span><\/p>\n

When it comes to energy efficiency, some of the more common steps are installing sealed windows, insulation, <\/span>upgrading bathroom fixtures<\/span>, and even using foyers to keep air conditioning<\/a> or heat from escaping every time a door is opened. <\/span><\/p>\n

While these steps will improve the \u2018efficiency\u2019 of a property and will not only have a direct impact on net income and property value, there are limits.\u00a0 <\/span>For example, the upgrades listed<\/a> all require significant capital investment.\u00a0 <\/span>As such, they are not always the best options.<\/span><\/p>\n

Smart property investors know this so before undertaking massive capital investments they look at the potential payoff and they create a plan \u2013 which may take several years to implement.<\/span><\/p>\n

This brings us to the other options to increase efficiency.\u00a0\u00a0 <\/span>Small improvements could include sensors which control lighting or air conditioning in rooms based on movement, or lack thereof.\u00a0 <\/span>Another option is to regularly perform planned maintenance.\u00a0 <\/span><\/span><\/p>\n

Performing regular maintenance on <\/span>investment properties<\/span>can save you money over the long-run.\u00a0 <\/span>This might sound counter-intuitive, but when you think about it performing regular maintenance makes a lot of sense.\u00a0 <\/span>You wouldn\u2019t run your car for five-year<\/span> without an oil change; so why wouldn\u2019t you perform regular check up on building systems \u2013 such as HVAC, pipes & drainage, etc.\u00a0 <\/span><\/span><\/p>\n

Doing so helps to ensure everything is in good working order and will lower the total cost of ownership by reducing how often you need to undertake major repairs.\u00a0 <\/span>This brings up another element in efficiency \u2013 improved cash flow management.<\/span><\/p>\n

Part of this includes management of service contracts with suppliers.\u00a0 <\/span>But another part includes looking at tenant payment systems.\u00a0 <\/span>Let\u2019s face it, the days of the check being in the mail are long gone.\u00a0 <\/span>Who uses checks anyways?\u00a0 <\/span><\/span><\/p>\n

Instead opt for a payment system which either allows you, as the landlord, to automatically debit a tenant\u2019s account or an <\/span>online payment option<\/span> which will clear on the same day.\u00a0 <\/span>Doing so will give you more certainty on when cash is coming in and more transparency when there is a delay.<\/span><\/p>\n

As you can see, these \u2018secrets\u2019 involve little or no additional investment and can be implemented in seven days or less.\u00a0 <\/span>Start increasing your ROI<\/strong> today and laugh all the way to the bank.<\/span><\/p>\n<\/div>\n

realtytimes <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investing in real estate is not complicated.\u00a0 All you need to do is find the right … How Smart Investors Increase Their ROI<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":735,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[615,4,527],"tags":[4751,9628,9685,12908,543,617,1007,41,84,219,678,740,907],"class_list":["post-734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investors","category-opportunities-in-new-markets","category-realestate","tag-amazing","tag-cash-flow-management","tag-commercial-properties","tag-home","tag-home-buying-guide","tag-house","tag-owners","tag-property","tag-real-estate","tag-realty","tag-rental","tag-roi","tag-tenant"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/02.09.2015_%D0%B8%D0%BF%D0%BE%D1%82%D0%B5%D0%BA%D0%B03-480x255.jpg?fit=480%2C255&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=734"}],"version-history":[{"count":1,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/734\/revisions"}],"predecessor-version":[{"id":90647,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/734\/revisions\/90647"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/735"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}