We’re thinking about your Net Operating Income (NOI) before you even invest. If you have the good sense to work with our team before you buy your next rental property, we’ll be able to tell you whether it’s a good or bad deal. We can help you negotiate for the best terms based on what we know about the market, the competition, and the local tenant pool. We know which buildings are easy and efficient to improve. We know where you’ll lose the most money.
Achieving high NOI in residential real estate is a bit of an obsession for us at EPOC Property Management. We don’t wait for the market to tell us whether your property is going to be profitable; we take a proactive approach to your property to ensure it’s earning money in any kind of market conditions. We see ourselves, as your property management advisors, as having three responsibilities:
Ensuring consistent occupancy and minimizing vacancy
Ensuring that your rents go up every year
Keeping maintenance cost-effective
All of these things impact your NOI. We want to talk about some of the other investment insights that we bring to you, your property, and your entire portfolio in order to ensure you’re earning what you should.
Why It Comes Down to NOI
We build dashboards for the investors who work with us so they can see the impact that strong NOI has on the entire investment experience. Your cash flow counts. Your long-term ROI is important. To really hone in on the success of your investment, however, and to understand where you’re doing well and where there is room for improvement, we have to follow the NOI.
Net Operating Income is the ultimate measure of a property's profitability. It's calculated by subtracting operating expenses from gross rental income. The formula looks like this:
NOI = Gross Rental Income - Operating Expenses
Our goal, when leasing, managing, and maintaining your investment properties, is to maximize your rental income while minimizing your operating expenses.
Here's how a few of the ways we achieve that:
We increase rental income.
While it’s true that the local market really has a large impact on what you’re able to charge, we know that there are ways to optimize your rental rates to ensure you’re bringing in high rents. We’ll research the local market and we’ll gather analytics about what similar homes are renting for, and then we’ll focus our energies on making your property even more profitable. Our rates are competitive enough that they attract high-quality tenants, but they also don’t leave any money on the table. Know what your property is worth. An upgraded appliance or some hardwood floors or an investment in smart home tech will always justify higher rents, and that leads to better NOI.
We make your property more attractive to well-qualified tenants.
We improve the first impression your property makes on prospective tenants, and this has a big impact on what you’re charging and who you’re attracting. Enhancing the curb appeal and interior aesthetics of your property starts with simple things like fresh paint, modern fixtures, and well-maintained landscaping. This can make a significant difference in attracting tenants willing to pay more. It sets up some competition among great tenants too, with everyone wanting to rent the best property on the market.
We offer additional high-value services.
Let’s look for new income streams that will make your property more valuable and your rental income higher. Consider offering additional services such as laundry facilities, parking, or storage units for an extra fee. In a multi-family building, valet trash services can be both lucrative for owners and convenient for tenants. When you can provide extra services that add convenience for tenants, they’re willing to pay more, and that’s going to generate additional income for you.
We minimize operation expenses.
There are a few different ways to reduce what you’re spending on your rental property. This might be something like implementing energy-efficient solutions within the rental home. Tenants are increasingly looking for sustainable and eco-friendly homes, and we’re meeting that need by installing LED lights, encouraging upgrades to Energy-Star rated appliances, and working with low-flow plumbing fixtures. While there may be an initial cost, the long-term savings on utility bills can be substantial.
Regular maintenance and preventive services are also crucial to avoiding costly repairs down the line. We will regularly inspect and maintain plumbing, electrical systems, and roofing to keep everything in tip-top shape. HVAC contractors are called to check on things annually, and we always keep up with pest control and other recurring services.
Professional Property Management and NOI
Hiring a professional property management company can be a game-changer for your earnings, especially your NOI. Make sure that you’re partnering with a company that has the expertise to efficiently handle day-to-day operations, tenant relations, and maintenance, ensuring your property runs smoothly and cost-effectively.
More important than all that, make sure your management partner understands your investment goals and can provide the kind of reporting that shows the difference they’re making.
For example, we offer:
Better Investment Expertise
From our ability to conduct market analyses to our willingness to impact how your property approaches the market, you get a more profitable experience. We’ll conduct thorough market analysis to identify trends and opportunities, and we’ll also make sure you’re well-positioned to succeed in any market. You have to understand the local real estate market, but you also need to make informed decisions about property acquisition, rental rates, and potential upgrades based on your own investment goals.
Accountability
Find a management partner who takes accountability for the success of your investments and your tenants. You want to trust your management partner to make financially-driven decisions.
Achieving a high NOI in residential real estate requires a combination of maximizing rental income and minimizing operating expenses. By optimizing rental rates, improving property appeal, implementing cost-saving solutions, and leveraging professional property management and investment expertise, you can significantly boost your property's profitability.
We think our team is your best management solution. Please contact us at EPOC Property Management when you’re ready to earn more NOI.
