Apartment Buildings: Fighting Rising Interest Rates
Rising interest rates can lead people who invest on apartment buildings to numerous challenges. However, they don’t need to worry too much about anything as there are some proven methods to fight against rising interest rates. Continue to read and we will share some of the most proven methods to increase income to tally rising interest rates.
- Renovate units.
Renovating units is a straightforward method available to increase monthly rent. On average, a renovation project can enhance overall property value by around $50,000. This would help a landlord to increase monthly rent by around $200. This will eventually provide immunity against rising interest rates.
- Managing energy expenses
Rising energy expenses is another challenge that apartment owners have to face as of now. Biggest reason behind the increase of energy expenses is due to the hike of natural gas prices. In fact, natural gas prices have increased by around 25% when compared to the previous year. This is where apartment owners may take a look at alternative ways available to get the energy requirements catered. For example, it is possible to replace the existing furnace with a more energy efficient one. Likewise, it is also possible to take a look at the CMHC energy programs and receive benefits that come along with them.
- Property insurance
Every single dollar saved from the monthly insurance bill would increase value of the property by around $240. Hence, this can be used to battle against rising interest rates. This would provide an amazing 1,900% return on investment per year. You just need to go ahead and look for the right insurance provider or broker to work with.
Follow these tips and make sure that you don’t lose money with your apartment building investment.