For asset managers in the real estate and multi-family housing space, boosting Net Operating Income (NOI) and maximizing asset value is always top of mind. NOI demonstrates the value of your properties’ earning income, because it shows what your profits will be after you remove the costs going into them. Sure – a property with a fountain, sprawling lawn, pool, and tennis court may look beautiful and sell well, but what are the maintenance costs of those features? Are they driving up your water bills, and slowing down operational efficiency? How does that impact NOI and overall asset value?
3 Tips to Increase Asset Value and Net Operating Income of Properties
- Add one or more profit centers. This is a great way to maximize the amount of income derived from the property. This can be done by adding a vending machine or a laundry room – or even tracking individual water use. For example, if you want to charge each tenant for their exact water use, you can now do so with WaterCompass. WaterCompass is a non-invasive flow monitoring device that can do this for you by providing real-time water use data across properties. It is also used to establish baseline water usage and detect leaks. This can ultimately save on water costs and help increase your NOI.
- Enhance property curb appeal. Curb appeal is essential for multi-family housing properties because a prospective resident’s impressions are what gets them in the door. Do the landscape and building look inviting? Does the lawn have brown patches in one area or a big puddle in another? Installing a smart irrigation system can help you moderate your landscapes automatically to keep them as healthy and beautiful as possible – all while saving water (another monthly expense!). You can also check out this list of 10 Things That Need To Be On Your Landscape Maintenance Plan for more ideas about how you can increase curb appeal with sustainability in mind.
- Be forward thinking. Asset management is about considering the future of your properties. While it’s easy (and tempting!) to cut costs in the short term, not investing in your properties can hurt your assets down the line. Avoid cutting corners in the moment because something costs more money upfront. Investing in your properties with innovative solutions, such as water or energy conservation technology, will maximize your asset value in the long run. The same goes for maintenance of properties. It can be tempting to operate in reactive maintenance mode, simply doing what’s needed in the moment to temporarily fix problems when they arise, to conserve on money and time costs. However, the smarter route is proactive maintenance – which can ensure properties stay in top condition over time and reduce the number of disruptions and issues.
There are many ways to increase the NOI and maximize the asset value of properties, including implementing smart water management solutions. From enhancing the curb appeal with smart irrigation to adding a profit center using a leak and flow monitoring service, HydroPoint is your partner in smart water management. Contact us today to learn more about how we can help.