Creative Ways to Boost NOI

[Robert Rixer]

Looking to the BP community for creative ways to boost NOI. I'm looking for the most creative things people have seen or can think of, irrespective of how impactful it actually is to the bottom line or how much it would cost CapEx-wise. The more creative the better!

Examples to kick it off: adding solar panels, vending machines, advertising space, allowing credit card rent payments w/ fee. 

[Bryan Hartlen]

Utility charge backs / RUBS

Assigned parking spot rentals (vs unassigned first come first served)

Vending machines

Pet fees

Common facilities reservations / rentals (eg party rooms, etc)

Laundry

Storage rentals

[Evan Polaski]

@Robert Rixer, I don't know how creative these are, as many are common plays:

Valet Trash
Fencing in first floor yards
Providing washer and dryers for added rent
Reserved, Covered parking
Tech Packages
Internet and Cable contracts, with reimbursements
Payment Plan rents, with small service charge (i.e. bill 1/4 rent each week)
Reserved Rental cabanas at pool
Private pool party rental option
Golf Simulator in clubhouse - fee based
On site, self serve car wash (quarter feeder style)
Charged group fitness/personal training services
Game room in clubhouse with monthly subscription for tenants (Xbox, Playstation, etc)
Changing out high maintenance grass for astro turf or lower maintenance/lower water use shrubbery

But ultimately, I think a lot of NOI increases come from deep dive into understanding EVERY expense and finding ways to minimize them, and/or no outsource them.

Train maintenance team on basic HVAC and appliance repairs (find way to get them licensed as needed)
Buy paint sprayers for faster, easier turns versus having to hire a contract painter, and possibly repaint whole unit each time
Standardize all finishes, so you can buy in bulk, everything from hinges and door knobs to cabinets, paint colors, and light fixtures.
Potentially get leasing people onto lower base salary with higher bonus potential
Bulk/bundled insurance across portfolio (even better at scale is to self insure)
Regularly test sprinkler systems for leaks.

Non-NOI, but benefit to you: partner with insurance agency to get referral kickbacks from your tenant base for renter insurance. Or (not condoning) force them to use your insurance provider for their rental insurance.

[Robert Rixer]

@Evan Polaski Absolutely love this response. And completely agree a dollar saved on expenses is worth the same as a dollar gained in revenue, but the expense side is often overlooked. Overall a lot of these things take time and effort and on the front end and are insignificant on their own. But applying many of them adds up, especially over a growing portfolio. This is true value creation.

[Benjamin Aaker]

Audit expenses and cut the fat.