MY TOP 5 NOI BOOSTERS

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 Something on this list is GUARANTEED to make or save you thousands or both.

#1 Rental Revenue

Select New Comps. Whether you’re setting the rents in-house or utilizing revenue management software there’s a good chance that your comp list is dated. Here’s why you need to shop your submarket, properties that have traded in the past 12 months, new builds, OR properties that were a class above may have adjusted rents to be more competitive and pushed into your market rates. Select at least 5 comps using this method: 1 that is a class above (so you know when you’re being pushed), 1 that is a class below (so you know when to increase), and 3 that are in class with your asset.

👉 For more Rental Revenue Boosters – Set up a free 30-minute call with Asset NOI to discuss how we can boost rental revenue in just 90 days.

https://shampton-assetnoi.zohobookings.com#/maximizenoi

#2  Turnover Management

Reducing turnover boosts NOI in 2 primary ways. No loss of revenue due to vacancy and zero turn costs. BIG NOI Booster if you can deploy turnover-reducing strategies. Consider this….

Offer Longer Lease Terms. Rents are not expected to increase substantially for a period of 18 to 24 months. For in-place residents paying at or above the current market, consider 15 to 18-month leases.

Offer No-cost Extensions to residents paying above market during periods where market rents are lower and vacancy periods are longer. NTV for Q4? Offer a 1, 2, or 3-month extension with no MTM fees.

Set ALL 3-bedroom Lease Expirations to Q2 & Q3. These large units carry high turn cost & when vacant in the 1st or last quarter tend to sit vacant for 60+ days. Fix this permanently, by changing the settings in your PM software to only allow Q2 & Q3 expirations.

🔗 For More  Double NOI Booster Turnover Reduction Tips – Follow me on LinkedIn linkedin.com/in/stacey-hampton-141a0097

#3 Utility Expense Management

STOP Paying Sales Tax on Electric & Gas in Texas. All common area & vacant electric multifamily properties are sales tax-exempt. Check your most recent common area electric bill & spot check vacant and building bills. If you’ve been paying sales tax, you can stop that & you’re entitled to a refund! Ask me how?

Change Your Water Billback Formula.

Allocation: There are two primary ways to bill back allocation, each impacting the % of absorption rate differently depending on the asset and unit mix. EASY BUTTON: Ask your 3rd party utility billing provider to run the last 3 months’ billings using both formulas to see which one results in a better billback rate. See PUC link below for directions on changing your billback formula.

Submetering: Many of the submetering systems installed in the 90s or early 2000s are not functioning properly, resulting in more of the expense being passed on to ownership. Consider converting to allocation. EASY BUTTON: Ask your 3rd party utility billing provider to run the last 3 months’ bills using allocation formulas to identify a better billback formula. See PUC link below for directions on changing your billback formula.

https://ftp.puc.texas.gov/public/puct-info/consumer/facts/factsheets/waterfacts/TenantGuideAllocatedService.pdf

STOP Waste Removal Overage Fees. Overage fees can increase waste removal costs by $1K or more per month. Relocate an underutilized dumpster to the area where the dumpster that is often incurring overage fees is for a no-cost solution. Increase pickups or add weekend pickups for a property wide issue, add larger dumpsters or additional dumpsters, these changes often result in lower monthly expenses & happier residents when overages exist. EASY BUTTON: Request your waste removal provider or broker for suggestions and a quote on all of the above.

📧 Find out how to get your sales tax refunds by emailing me at Shampton@AssetNOI.com.

#4  Property Taxes

Dispute your taxes. This goes without saying BUT the real BOOSTER comes from being active in the protest vs passive. Leave tax dispute entirely to your property tax consultant and you’ll be leaving money on the table….Thousands $$$. Consider the active approach in building a compelling protest case along with your tax consultant. Find 3 comps that received lower increases in previous years (see your county tax office) and showcase why these comps have higher value than your subject property. Look for similar class 2024 trades that sold for less in than in 2021/2022 when property values AND taxes were through the roof. There’s never been a better opportunity than now with some recent transactions showing up to a 30% reduction in value since the last trade. EASY BUTTON: Ask your CRE broker for this list of recent transactions that reflect MF asset values have lowered.

📧 Connect with me for a property tax consultant that’s local and knows the municipalities at Shampton@AssetNOI.com

#5 Property & Liability Insurance

Keep Occupancy High. Easier said than done, but underwriters perceive lower occupied properties as a higher risk due to the perception of management issues, more vacant units = undiscovered damage due to leaks, crime, or homelessness.

Highlight the Risk Mitigation, You Don’t Even Know You Have. Risk mitigation can help you distinguish your portfolio from the hundreds of portfolios the underwriter is considering OR it can offset some claims that might have your quote on the high end. EASY BUTTON: Send a checklist of all the below to your property manager, have them check if any of these risk mitigators are present in your portfolio. Share this with your insurance broker.

Fraud/ID Verification – Patrol Service – Cameras – New Exterior Lighting – Non-smoking property – Common area & gate access systems – Smart Features such as locks, leak detectors – Fire prevention such as fire stops or stove guards

👉 Follow me on LinkedIN for future insights on how to take control of your property and liability insurance expenses. I work with multiple brokers and consultants to understand what motivates underwriters and policy providers. linkedin.com/in/stacey-hampton-141a0097

About Asset NOI

Asset NOI is an active generalist consultancy that improves all areas of multifamily operations across the US. You can find more about Asset NOI Consulting in the coming weeks when the new website is launched or now by contact Stacey Hampton, Principal Consultant & Founder at Shampton@AssetNOI.com.