Ways to increase appraisals of 5+ multi?

[Thomas Hickey]

Hi All! I have to this point mostly owned "residential" multifamilies. As I look into larger properties i am wondering if anyone has a list of improvements to make and estimated improvement $ amount to be added to value of property? Thanks, Tom

[Andrew Cameron]

Don't forget to focus on the expense side of things either. That can have a dramatic increase in property values. For example if you can decrease expenses by $5,000/year with an 8% cap rate you just increased the value by $62,500.

I'm in winteryCanada so the first thing I always look at is reducing heat costs. I see your in Massachusetts, so this will probably apply to you too.

I always check to see how it's heated and see if I can replace the whole system with a large heat pump. If I can't do that I usually look to install mini-split heat pumps in the units. If I can't do that I'll look to update the heating system to a more efficient boiler or fuel source. Then I apply the same analysis to the hot water source.

Other things I look at are:
- Installing low flow faucets and shower heads
- LED or CFL lights
- hot water blankets
- new low flow toilets
- new energy efficient appliances, etc.
- occupancy sensors in common areas

In Nova Scotia, there is Efficiency Nova Scotia which is tasked with helping control energy demand. They have a number of programs one can tap in to to replace old light bulbs, install low flow shower heads, etc. Do you have anything like this organization in Mass?