There are many ways to add value to a property. Below is a list you can start with:
The most common and simple way to add value is to increase income by filling vacancies or creating additional space to be rented. Increasing the gross income, obviously, increases your net income, which indeed increases the value of the property. This could also be achieved by renovating the building and charging higher rents upon lease renewal. Conversely, the best way to increase the bottom line might be to find ways to decrease expenses by operating the property more efficiently. The best example could be employing energy efficiency measures.
Change of Use:
Another popular way to increase the value is to change the use to the best and highest use possible; for example, changing a building from residential to commercial use.
In some prime areas, multiple adjacent properties are acquired to build a multiple-unit property. For example, buying three adjacent detached homes to build ten townhouses. Thorough due diligence measures are required to make sure that the zoning allows for this type of development on the specified lots.
Divide and Conquer:
Buying a big lot and dividing it into smaller lots is an established way of increasing the value of a property. Basically, buying in bulk and selling at retail price.
This is the process of converting a property from one title to multiple titles to be sold separately. The process is similar to subdividing a big lot, but the process is a lot more complex. Examples could include converting an apartment building to condo residential, or office building to office condos and so on.
A property that has the potential for value growth through the change-of-use process of condo conversion is what we specialize in.