Improving the return on investment (ROI) of your multifamily property is an important part of most investment strategies. To do this, you need to ensure that you are making the most of your income potential. Strategies to maximize ROI include:
Finding ways to save on expenses
Boosting resident retention
Increasing rent
Finding efficiencies
Making residents feel at home
ROI can also be determined in a variety of other ways, including by looking at a property’s cash on cash returns, its cap rate, or even its gross rent multiplier (GRM). In general, most commercial investors prefer a cash on cash return of at least 12%, although this can vary based on the risk of an individual investment. Likewise, acceptable cap rates and gross rent multipliers also vary greatly based on the specifics of an individual investment property.