You know, the challenge that a lot of our clients are facing right now is quite simply inflation. And while inflation is incredible when it brings rising rents with it, which seems like such a huge plus, it also of course has the downside of bringing up the cost of everything else. So those costs are going to happen to you as landowner without you doing anything, your taxes are going to go up most surely your insurance is going up, and as well as all the supplies for tenant turnovers as well. So the only way for you to stay on top of those costs is to make sure that your rents are proactively being updated every time you have a turn and taking advantage of that as much as you can.
So how do you go about addressing the need to make sure your rents are keeping in mind with that increase in inflation and your overall costs? Well, quite a few of our clients are addressing this with putting in revenue management or dynamic pricing as it’s known to make sure that those that you’re using intelligent pricing in order to gauge what the market is doing and make sure you’re following where other landlords and other owners are pricing their properties and keeping pace where the market rents actually are. That’s the biggest thing that you can do to address that increase in cost.
Some of the other things that our clients are also doing in order to make sure they’re addressing that increase in inflation and those rising costs are stockpiling items that you’re always replacing like appliances, putting in hard surface flooring to reduce the constant turnover of carpet in your units. And fixing it costs as much as possible now, by signing longer term agreements with providers to fix your costs, hopefully for at least a year in advance to get ahead of that rising inflation costs.
Those are just a few of the items that are absolutely essential to do. And make sure those rents are increased right along with it because if you don’t, the value of your building will be going down in comparison to all the other properties in the market. So it is absolutely crucial that you make sure your rents are keeping pace in order to protect the value of your building, and to keep a close watch on all your expenses. And that is how the existing clients that we have are really able to stay ahead of the inflation. Cost and protect and even increase the value of their properties for the long term.
