Digging for Buried Treasures in Search of Hidden Value and Income
Did you know there are buried treasures on your property that can instantly increase the financial and operating performance of your property? Why go searching for greener pastures when these buried treasures are right in your own backyard.
And, do you know what? These juicy hidden assets are ripe for the picking.
Unfortunately, most of these hidden assets go undetected by most apartment professionals. They overlook the opportunities and possibilities that can directly improve the income and value of their properties.
So, the question becomes - How does one learn where to dig for these opportunities and possibilities?
Well, the first thing you MUST do is to learn about your property, market and customers. What problems are going unsolved? How can your property solve your customers' problems?
I know this may sound theoretical in nature, but its reality. People buy things that solve problems.
So, find the problems your prospects and customers need solved that your competition is not solving. Then position your property as the solution to their problems.
To find the problems, you must conduct extensive RESEARCH. I know the word "research" scares you. In fact, research scares 95% of most apartment professionals.
Research will illuminate the information you need to know on "WHERE to dig" for the buried treasures. Without proper research, you will never find the buried treasures.
Here's an example:
You conduct extensive property and market research and find lack of storage for residents is a problem. Your property, as well as your competition, does not have enough storage capacity.
So, how can you find a solution to this problem?
Do an inspection of your property to find possible locations where storage units can be added. A few areas to look for storage possibilities include:
- Under stairwells
- Hallways
- End of buildings
- Unused piece of land
- Under utilized common area
- Clubhouse or maintenance building additions
- Garages
- Carports
The list of possibilities to add storage units is endless. Search your property, and don't be afraid to be creative.
Let's say you can build or buy a pre-made section of 10 storage units (6' x 6' units) for a cost of $5,700 or $570/unit.
Let's also say you can rent them for $35/month. With all 10 units rented, you will increase your collectable income by $350/month or $4,200/year.
Using this scenario, you will have created the following benefits:
1. Increased your cash flow by $4,200/year
2. Increased the value of your property by $60,000 ($4,200 divided by .07 cap rate)
3. Increased resident retention
4. Increased the competitiveness of your property in the marketplace
5. Uncovered a buried treasure
Having previously used this exact scenario on an under performing property, I know this stuff works. But, you've got to do the RESEARCH! You've got to find problems that need to be solved, and then position your property to solve them.
These types of treasures are all around you. I've only given you one example of finding ways to uncover hidden assets that will increase your property's income and value.
You can do the same thing. Do the research to find your buried treasures.
