5 Ways to Increase NOI Without Full Unit Renovations
Think Multifamily | Mark Kenney
Think you need granite countertops, stainless appliances, and brand-new flooring to push NOI? Think again.
Sure, full unit renovations can drive premiums. But they also come with risk—vacancy, supply delays, construction headaches, and CapEx that eats into reserves. And sometimes? The rent bumps just don’t justify the spend.
Here’s the good news: you don’t have to wait for turnovers or big remodels to grow income. Some of the best returns come from smaller upgrades and smarter operations that create real value without draining your budget.
Let’s break down five proven plays that actually move the needle.
1. Install Smart Tech (Locks, Thermostats, and More)
🛠️ Why it works: Renters love convenience, efficiency, and a modern feel. Smart locks, thermostats, and lighting aren’t just “cool gadgets”—they reduce waste, cut maintenance, and give your property a competitive edge.
📈 Upside:
Add $25–$50/month in rent with bundled tech packages
Cut HVAC costs with programmable thermostats
Eliminate rekeying expenses with smart locks
💼 How to roll it out:
Offer smart tech as an upgrade during renewals or move-ins
Create bundled packages like “Green Living” or “Smart Entry”
Pair with LED lighting or USB outlets to increase perceived value
The kicker? Many of these upgrades pay for themselves in the first year.
2. Offer Paid Partial Upgrades
🛋️ The strategy: Instead of waiting for move-outs to renovate, let tenants pay for bite-sized upgrades while they’re in place. It keeps them longer and puts new revenue on the books today.
🔧 Popular options:
Cabinet pulls or faucets
Kitchen backsplash
Accent walls or fresh paint colors
Ceiling fans or modern light fixtures
✨ Execution ideas:
Show upgrades in a “Look & See” unit or brochure
Offer tiered pricing for single upgrades vs. bundles
Discount packages for residents who renew 12+ months
When residents personalize their space, they tend to stick around. You get higher NOI and better retention. Win-win.
3. Implement RUBS (the Right Way)
📈 The play: A Ratio Utility Billing System (RUBS) shifts utility costs (water, sewer, trash, etc.) back to residents based on fair allocation formulas—unit size, occupant count, or bedrooms.
💸 Why it matters:
Recaptures thousands in expenses annually
Raises NOI without raising rent
Adds long-term property value
🧠 What to know:
Check state/local rules—RUBS isn’t legal everywhere
Communicate clearly to tenants about fairness and transparency
Roll out at renewals or new leases for compliance
🚀 Real-world example: A 100-unit property saved $30K annually through RUBS. At a 7% cap, that’s $428K in added value.
4. Tighten Your Renewal Pricing
🚪 The mistake: Many PMs slap on a flat $25–$50 renewal bump across the board. That’s lazy—and leaves money on the table.
💲 Smarter strategy:
Benchmark every renewal to market rent, not current rent
Track under-market leases with a renewal pricing sheet
Enforce policies like: “No renewal more than $50 under market without approval.”
📉 Example: Just $75 under market across 50 units = $45,000/year lost NOI. That’s $643K in lost value at a 7% cap.
✅ Pro move: Incentivize early renewals with modest perks (small upgrades, discounts). You retain tenants and close the rent gap.
5. Monetize Parking, Pets, and Add-Ons
🚗 Low-hanging fruit: Many operators undercharge—or don’t charge at all—for services tenants are happy to pay for.
💰 Revenue streams:
Reserved/covered parking ($25–$75/month)
Pet rent ($20–$40/month) or one-time fees
Storage unit rentals
Valet trash service
Community Wi-Fi or bundled smart services
💼 How to execute:
Audit current services—what are you giving away for free?
Add fees as separate income lines (not just lumped into rent)
Bake terms into lease agreements and enforce consistently
These streams don’t just pad cash flow—they push NOI, which boosts your property’s value at sale.
Final Thought
You don’t need deep pockets or vacant units to grow NOI. The best operators know how to create revenue through creativity and operational discipline—not just expensive remodels.
Even a modest $50/month per unit = $600/year per door. On 100 units, that’s $600K in added value at a 10% cap.
So next time you hear someone say they’re “waiting for turnover” to raise rent, send them this playbook.
📘 Want to Spot More NOI Opportunities?
Grab our free guide: The Guard Dog’s Guide to Asset Management.
Inside, you’ll learn:
✅ The do’s and don’ts every operator should follow
✅ Real strategies to increase NOI and property value fast
✅ Red flags that reveal your PM may be costing you money
🚀 Ready for Bigger Leaps?
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