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The most commonly sought after property for new landlords is multifamily property. This is a fairly straightforward idea – with a single multifamily property, you can have multiple units with multiple different tenants. More tenants and units occupied results in more cash flow and more stability when compared to managing a single-family property. Despite the number of plus sides there are to managing a multi-family property, it doesn’t come without its own set of unique challenges. As you start your path as the new landlord, you need to be prepared for those challenges. What challenges await you?

Don’t Bite Off More Than You Can Chew – Start Off Small

In the beginning, it’s very easy to become excited about such a large project that holds multiple multifamily properties in your portfolio. However, it’s better to understand the ropes of managing properties with a smaller project. Handling a single multi-family home with only two or three families currently residing in the home is a great way to get a handle on the new world of managing multi-family living. If you’re just starting out, mistakes are bound to happen as you’re learning and with a smaller property, these mistakes will have less of an impact. Starting out small will help you have a chance to learn in a more controlled environment.

Overestimate Your Expenses

It is of the utmost importance to plan well when starting on a new property. When planning for your expenses on smaller projects, you may try to estimate them as conservatively as possible. This is where the challenges are a bit different when handling a multi-family property. Multi-family properties have more variables compared to standard properties, more possible future repairs to make and a higher number of variables influencing your total costs. Overestimating your expenses allows you to be more in line with your projected cash flow and this gives you a little wiggle room when maintenance or repairs end up costing a bit more than you expected.

Curb Appeal 

You’ve got all the expenses and experience you need under your belt. What if your next property has a little wear and tear? Your property needs to be in good shape if you are going to attract the right tenants. When you first get your property, make sure that everything looks nice and updated. Most renters nowadays look for apartments that have been freshly renovated or brand new units that have not been rented out before. This knowledge may lead you to look at potential renovations for your property. Renovating the kitchens to be more open, changing the siding on the exterior of the building, changing out the flooring in each unit, or just painting the complex in a different color scheme. These are all small things you can invest in to have the curb appeal to attract new renters to your refurbished property.

Looking to renovate your multifamily property? Contact Alterra Construction Group by calling 615-438-5734 or through our website.