27 Ways to Add Value to Your Multifamily Property

27 Ways to Add Value to Your Multifamily Property

by Trevor Calton

Strategies to increase income, reduce expenses, and strengthen long-term performance

It’s not just about raising rents.

Many investors think increasing revenue means jacking up prices. But real success in multifamily ownership comes from building long-term value—by enhancing operations, improving tenant experience, and identifying opportunities that most owners overlook.

If you’re not actively optimizing both your income and your expenses, you’re leaving money on the table. Worse, you’re setting yourself up to lose ground as expenses rise, competitors modernize, and tenants get savvier.

The good news? You can start adding value today—without needing massive renovations or huge capital reserves.

Start With the Basics: Assess Your Current Revenue

Before adding anything new, take a close look at what you’re already earning.

Many properties have untapped income sitting right under the surface—underpriced rents, outdated fees, or underutilized amenities. If you haven’t reviewed your revenue strategy in the past year, chances are you’re leaking value.

Start by reviewing your rent roll, late fees, deposits, and other line items. Are they aligned with the current market? Are they covering your actual operating costs? Tighten this up first before layering on new income streams.

Rethink Your Rent Strategy

It’s not just about raising rents across the board.

Rent increases on existing tenants can cause “payment shock” and result in costly turnover. But failing to meet the market on new leases leaves money on the table.

Instead of blanket increases, stay competitive by doing a rent survey or pulling comps with your broker. Keep existing tenants happy with great service, and bring new leases up to market when units turn. This creates a sustainable rent growth strategy without creating unnecessary vacancy.

Check Your Fee & Deposit Structure

Most owners rarely revisit their fee schedule once it’s set—but they should.

Fees and deposits often lag behind real costs. Pet deposits, application fees, move-in charges—if they aren’t covering your actual expenses (or if they’re out of step with competitors), they’re not doing their job.

Audit each one: What does it cost you to process a lease? To repaint or deep clean? Adjust accordingly, and consider switching from one-time fees to ongoing monthly income where appropriate (like pet rent instead of deposits).

Invest in What Tenants Actually Want

Amenities aren’t just nice to have—they’re rent drivers.

Appliances like dishwashers, in-unit laundry, and air conditioning are no longer luxuries for many renters—they’re expectations. In competitive markets, tenants often skip properties that lack these features altogether.

If space allows, consider upgrades. Even small appliance replacements or minor layout changes can drastically improve your property’s appeal and justify stronger rents on new leases.

Modernize Your Laundry Room

Laundry machines are often underpriced and underutilized.

If you haven’t updated your laundry pricing or equipment in a decade (or more), you’re likely losing both money and tenant satisfaction. And if the laundry room is poorly maintained, residents may choose off-site options, leading to unnecessary frustration.

Make sure your pricing reflects current utility and maintenance costs. If the room is always crowded, consider adding more machines—or outsourcing to a third party for a set revenue share.

Unlock Hidden Revenue Streams

There are dozens of overlooked ways to generate additional income—often with minimal effort or expense.

Owners who build in extra services—like secure parking, pet rent, storage, or short-term rentals—create ongoing income streams that compound over time. These strategies not only grow revenue, but also add convenience that keeps residents longer.

Survey your tenants. What services do they already pay for elsewhere? If you can offer those same services on-site at a better price or more convenience, it’s a win-win.

Utility Reimbursement (RUBS)

RUBS (Ratio Utility Billing System) allows you to allocate water, sewer, and other utility costs directly to tenants, based on occupancy or square footage.

This not only increases revenue—it encourages conservation. It’s fairer, more transparent, and increasingly common across the industry.

If you’re currently absorbing utility costs, transitioning to RUBS could result in a major NOI lift without affecting your base rent.

Pet Rent

More than two-thirds of renters have pets—and most are willing to pay for the privilege.

One-time pet deposits don’t cover the long-term wear and tear animals create. Pet rent, however, provides ongoing compensation and creates a more balanced exchange of value.

Implementing pet rent also helps you screen responsible pet owners without outright banning pets, which opens your pool of applicants.

Storage Units

Storage is one of the highest-margin add-ons in multifamily.

Many tenants already pay for off-site storage. If you can convert existing space—unused garages, basements, or even a few extra closets—into rentable storage, you create income with minimal oversight.

Once installed, these units require little to no ongoing management and are rarely a source of complaints.

Parking Income

As density increases, parking becomes more scarce—and more valuable.

Reserved or premium parking spaces can generate reliable monthly income. Residents are often happy to pay extra to avoid street parking, especially in winter climates or high-crime areas.

Consider whether you can convert unassigned parking into assigned spots for a fee, or build in carport or covered options if space allows.

Bike Rack Rental

If your property is in a bike-friendly area, bike storage isn’t just a bonus—it’s expected.

Secure, covered storage not only protects tenant property, but it also reduces damage to interior walls and keeps shared spaces clean. Add a bike wash station or tune-up tools, and you’ve created a micro-amenity that fosters loyalty and retention.

Short-Term or Furnished Rentals

Furnished and short-term units won’t be your primary model—but they can be a powerful niche.

Whether serving traveling nurses, consultants, or relocating professionals, these units command a premium rent and can be turned over with predictable seasonality.

Test a unit or two to see if demand justifies the effort.

Appliance Rentals

This one’s surprisingly effective.

Offering appliance rentals—vacuums, carpet cleaners, even power washers—can help tenants maintain their space better and feel more empowered. For you, it means less wear and fewer complaints.

Set up a simple check-out system, and the revenue will follow.

Clubhouse & Amenity Space Rentals

Many properties allow tenants to use their clubhouse for free.

But most residents are willing to pay a modest fee to reserve it for birthdays, events, or holidays. Even charging a refundable cleaning deposit can create accountability while recouping basic maintenance costs.

Other Passive Income Opportunities

•   Cell tower/antenna lease – if your roof has clear line of sight
•   Billboard or signage lease – especially in high-traffic locations
•   Vending machines – modern machines support card payments and auto-inventory
•   Tanning beds – not for every market, but high ROI per square foot
•   Concierge services – for deliveries, pet sitting, or basic household help

These niche ideas aren’t universal—but if your location or resident base supports them, they’re worth testing.

Cut Costs Without Cutting Corners

Expense reduction is often overlooked in value-add investing—but it’s just as powerful as growing income.

Many owners throw money at upgrades without addressing the silent killers: long vacancies, water waste, inefficient lighting, and poor vendor management.

Speed Up Unit Turns

Every day a unit sits vacant is lost revenue.

Set a system for faster turns:

•   Schedule exit walk-throughs before tenants move out
•   Lock in vendors early
•   Offer pro-rated early move-ins to new tenants

These steps reduce downtime and improve predictability across your leasing calendar.

Cut Water Waste

Water is a major recurring expense—and one of the easiest to reduce.

Install low-flow toilets, efficient showerheads, and faucet aerators. Upgrade old dishwashers and washing machines. And check for leaks during regular maintenance.

One small drip can waste 20+ gallons per day. Multiply that across units, and the loss adds up fast.

Simplify Landscaping

Native plants require less water and less maintenance. Analyze your irrigation system and remove waste.

Rain sensors, timers, and drought-tolerant designs can dramatically cut costs without sacrificing curb appeal.

Install a Recycling Center

Recycling isn’t just about sustainability—it’s also about cost savings.

Reducing trash volume often cuts pickup fees by up to 50%. Plus, it promotes cleanliness and pride in the community.

Upgrade Lighting

LEDs use a fraction of the energy and last much longer than traditional bulbs. Add motion sensors or timers in common areas to eliminate waste.

If your location supports it, consider solar panels to offset your electricity costs long-term.

Challenge Your Property Tax Assessment

Think your tax bill is too high? You might be right.

Property taxes are often based on outdated valuations. Hire a local attorney or tax consultant to file for reassessment—it could save you thousands annually.

Requote Your Insurance

Have you improved security, added lighting, or installed cameras?

You may be eligible for lower premiums—but most insurers won’t offer discounts unless you ask.

Quote your coverage every couple of years, especially after improvements.

Cable & Internet Agreements

Bulk service packages with local providers can be resold to tenants at a slight markup—saving them money while generating income for you.

This works best when positioned as a convenience, not a requirement.

Don’t Forget Your Leasing Office

Many older properties still have dedicated leasing offices that are underused.

Today, much of the leasing process happens online or via mobile. If you’re not using that space regularly, consider converting it into:

•   A rentable studio
•   A coworking space
•   A package room or micro-gym

This can be one of the easiest value-adds you’ll ever implement.

Marketing Still Matters

At the end of the day, your upgrades only matter if people know about them.

Most renters compare base rents—without factoring in savings, convenience, or lifestyle upgrades. Your job is to clearly communicate the full value of your property.

Highlight included amenities in every listing. Show how you help residents save money. And emphasize what makes your property different.

Do you have any creative ideas to add value? Please feel free to share them.

Want help applying these strategies to your next deal?

That’s what I teach inside Real Estate Finance Academy.

Learn how to underwrite deals like a pro, spot value others miss, and build an acquisition plan rooted in financial reality.

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