Tips to Quickly Increase the NOI of Any Multifamily Asset

property-management-landscape

Tips to Quickly Increase the NOI of Any Multifamily Asset

5 MIN. READ

For many multi-family property managers, NOI (net operating income), and improving NOI, is a primary focus and concern. But many multi-family property managers overlook a key factor in improving NOI, focusing on increased occupancy and increased rental rates are important. But what about reducing costs? 

Lowering costs in purchasing and procurement and improving efficiencies in your supply chain management are often overlooked. Raiven, the leader in multi-family purchasing and procurement, has prepared these tips to improve the process and help you get quick results on your next balance sheet.

Strategies to improve NOI for your multifamily asset

There are several strategies to improve NOI in your multifamily portfolio. Essentially, you have three buckets to draw from. You can maximize current revenue streams, find new sources of income, or (the often-overlooked option) reduce costs.

Maximize revenue

  1. Take stock of whether your rents are market rate. Analyze your local market to understand your current position. If you are lower than average, take steps to gradually level set your rental rates. You want your property to generate revenue at its highest potential.
  2. Keep vacancy low. High vacancy is an indicator of an underperforming multifamily asset. Keep vacancy in step with the overall market, which will help improve your balance sheet.
  3. Upgrade your units. This gives tenants more options and allows them to pay more for certain items, such as in-unit washers and dryers, stainless steel appliances, and so on.

Find new sources of income

  1. Reserved parking. Carving out areas for reserved and covered parking will provide a convenience that your tenants will be willing to pay for. This option will add value and improve your NOI.
  2. Storage units. Tenants usually have more stuff than they have space. So, giving the option for extra paid storage or garage space works in your favor. Most tenants will have no problem forking out a few extra dollars for useful storage.
  3. Vending. Provide your tenants with options for items that they want and need. It could be laundry supplies, sodas, snacks or whatever else is in demand. This may not bring a lot of revenue right away, but it is a doorway to supplier partnerships and better occupancy rates.

Reducing costs

Cutting costs on operations and supplies is an underused strategy that, when done correctly and with the aid of purchasing programs and software like Raiven, can make a real difference:

  1. Save money on supplies. Multifamily assets are constantly churning through routine operational supplies. Things like HVAC filters, belts, tools and equipment can make substantial dents in your bottom line. Using Raiven's eProcurement platform, you have access to a large network of suppliers that provide the best supplies at the lowest negotiated rates.
  2. Control water consumption. Keeping water usage in check can help save money. Purchasing supplies like low-flow toilets, showerheads and aerators on Raiven Marketplace can minimize water usage.
  3. Go out to bid. Make sure you keep contractors and suppliers honest by performing RFPs at regular intervals. This ensures that you are getting the best and most qualified suppliers and contractors on your team. Raiven’s software makes the RFP process easy. It keeps all relevant documents in one place and ensures that all contractors are up to date and compliant.

Taking advantage of supplies savings is a method that can boost your NOI. Using the proper systems and software can give your multifamily asset an edge over the competition.

Try Raiven’s browser extension

Rogue spending can hurt your NOI. This is when your buyers purchase supplies from unapproved suppliers - whether intentional or not. It is normally done out of convenience and/or because of bad habits. But with Raiven’s browser extension, you can stop rogue spending in its tracks.

It works directly in your web browser. If your buyer is on an unapproved supplier website trying to make a purchase, the extension presents pop-ups of similar or the same supplies from your approved suppliers. It shows the price and savings you could have and allows you to add the items instantly into a universal shopping cart.

This extension redirects and trains your team to use approved suppliers, which keeps you in compliance and saves you money.

Automate your purchasing

Automation saves time and increases efficiency. By automating your purchasing with Raiven, you can streamline your purchasing process, which will allow you to focus on other areas of your business.

Raiven’s platform allows you to set up recurring purchases from your supplier network, optimizing your accounts payable management. You will also be able to submit electronic quote requests to suppliers to help speed up your workflow approvals. These simple automation steps will significantly improve your bottom line.

Let Raiven help

While each portfolio calls for a different approach, utilizing money-saving strategies and pursuing new revenue opportunities can help you keep NOI in check. And with Raiven’s platform, your multifamily asset can get a competitive edge in your local market. Its unique tools can help you save money on routine supplies, stop rogue spending and manage your supplier network with ease. Find out more by reaching out to Raiven today.