If you own an old multifamily building, before you set it up for sale, you may want to rethink it over. More investors are putting their money on a multifamily property because of its potential value and cash flow. In fact, as cited by writer Grant Cardone on Business Insider, more people — especially the Millennials — aren’t planning on buying homes as new units are expensive.
Here are more reasons to reconsider paying more attention to your property:
Your property may not be exactly sitting in the central business district where all the office buildings are. However, if your neighborhood is starting to gain popularity because of the cool vibe, new restaurants and bars, and other edgy places that most young people like to hang out at, you’re in a good spot.
High Market Demand
There is a constant demand for apartment rental because people find it impractical and expensive to own houses. Millennials, most specifically, don’t like the idea of staying in the same place forever, so renting is a better option. On the other end of the spectrum, older adults ditch their mansion for smaller spaces because they’re cheaper to maintain and easier to manage.
Don’t fear competition and see it as an opportunity. To stand out, instead of lowering your prices, work on adding more value to increase your rental fees. You may want to consider a complete overhaul — fix repairs, dress it up with new paints, and purchase similar ready to assemble kitchen cabinets on wholesale to upgrade and standardize the units. You may also want to add more facilities and amenities that would appeal to your market.
Maintaining multifamily properties seem daunting, but if you learn the behavior of people, especially the younger Millennials and the seniors, you will see that there’s potential in this business. Businessmen are looking for a multifamily real estate to invest on for good reasons.