Landlords and property owners who are looking for ways to compensate for higher operating costs might consider new ideas to ramp up revenues. “You can start by looking at dead or unused spaces in your buildings,” says Jae A. Roe, CPM, president of SOVA Real Estate Solutions in Newport News, Va.
Think creatively about how you can put that unused space to work. Mini and micro markets are an excellent option because they’re generally unmanned retail space, says Roe. “They can provide much of the same functional services as a vending machine, but they look much more like a convenience store or the in-building café many have grown accustomed to.” The concept is especially popular in locations with irregular hours of operation, where staffing would become a concern, she adds.
A Premium on Pets
Another opportunity for multifamily properties: pet services for residents. These services can range from pet sitting to complete grooming. Forty-five percent of U.S. households own a pet, a 7% increase since 2016, according to the American Veterinary Medical Association. Several studies have shown that millennials make up a large segment of both multifamily residents and pet owners. In fact, some renters consider their pets so important that websites are including ratings of multifamily properties based on pet-friendly policies and amenities.
Adapted from “Revenue Recharge,” written by Will Curtis, CCIM, CPM, and published in the Summer 2023 edition of the Journal of Property Management.