{"id":5226,"date":"2019-10-03T11:58:51","date_gmt":"2019-10-03T18:58:51","guid":{"rendered":"https:\/\/www.parcelpending.com\/?p=5226"},"modified":"2023-03-29T17:44:31","modified_gmt":"2023-03-29T17:44:31","slug":"5-strategies-for-reducing-operating-costs","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-us\/blog\/5-strategies-for-reducing-operating-costs\/","title":{"rendered":"5 Strategies For Reducing Operating Costs"},"content":{"rendered":"

As a property manager of a multifamily unit, your goal should be to identify areas where you can simultaneously improve tenant satisfaction and cut operating costs. Whether that be by installing an efficient apartment package delivery system<\/a> or by providing an in-house team for preventive maintenance, the more ways you can decrease overhead and expenses, the more profitable you\u2019ll be. Further, lowered costs yield increased cash flow, which makes it easier to sell the property, even in a competitive market.<\/p>\n

Now, actually reducing operating costs is easier said than done, particularly due to the fact that wages, utilities, and expenses have continually increased in cost. However, there are some common problem areas that regularly crop up in multifamily apartments worth considering. Below, you\u2019ll find 5 strategies property managers can take to reduce costs and improve tenant satisfaction.<\/p>\n

Property Expenses 101<\/h2>\n

The figure you always want to be aware of when managing any business or property is your Net Operating Income (NOI), which according to Investopedia is<\/a>:<\/p>\n

Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. NOI equals all revenue from the property, minus all reasonably necessary operating expenses. NOI is a before-tax figure, appearing on a property\u2019s income and cash flow statement, that excludes principal and interest payments on loans<\/a>, capital expenditures, depreciation, and\u00a0amortization.<\/em><\/p>\n

Your NOI is found by taking your multifamily unit\u2019s total revenue and subtracting operating expenses. The lower the expenses, the higher your NOI. Therefore, you want to do everything in your power to increase the NOI, which is especially important when figuring the total value of the property. If an investor is choosing between two similar buildings, located right next to each other, the building with the higher NOI will be in higher demand, and thus sold for more money.<\/p>\n

5 Strategies For Reducing Operating Costs<\/h2>\n

If your goal is to decrease operational costs and increase NOI, consider taking the following actions:<\/p>\n

#1 Install Smart Lockers<\/strong><\/h4>\n

Your time is limited. So is your staff\u2019s. There are only so many hours in the workday that can be spent on any given task. As a result, it\u2019s prudent to find ways where you can save time or energy. In recent years, one of the most common problems that property managers have had to face and manage is the rapid influx of packages being delivered on a daily basis. Even properties that do <\/em>have mailrooms are typically ill-equipped and understaffed when it comes to managing dozens upon dozens of packages.<\/p>\n

Frankly, you\u2019re not a mailman. Your job description has nothing in it about accepting, sorting, storing, and delivering mail to tenants. That\u2019s where Parcel Pending\u2019s smart lockers come in. Serving as an efficient property management tool<\/a>, they make package management easy by providing you with high-tech lockers that ensure simple and secure delivery (and retrieval of packages or any type of online order).<\/p>\n

Adding smart lockers to your property will reduce operating costs by:<\/p>\n