Adding Value by Increasing Rents in Apartments

As you know, the value in apartments is a function of capitalizing NOI.  The more the Net Operating Income, the more an investor will be willing to pay, in the most basic sense. There are, however, other elements at play when we raise rents.  Indeed, raising rents can have the effect of compressing economic losses of the building, which in turn contributed to the growth of NOI.

Find out more in this video:

2 Comments

  • Rose Rice Reply

    Ben,
    Is there a clear criteria that distinguishes an A,B, or C class neighborhood. Also, same questions in relation to an A,B,or C class tenant?

    • Ben Reply

      Rosalyn – there are some parameters that are universally accepted, but most of this is a function of perspective. Watch my blog in the next few days. I’ll post a video on this – just for you 🙂

      Thanks so much, and I am sorry about the delayed response.

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