Hey, so as a landlord, especially in the commercial space, you always are looking at increasing your net operating income. So here’s a couple of ways that we can help you increase your net operating income. So you have a lot of landlords recently that have actually purchased buildings. And what they’re looking at doing is removing old tenants and replacing new market tenants. You’re looking at increasing rents on the current tenants that are there if they’re within shot of actually being at market within the next year or two. But here’s some things that you can do that aren’t necessarily as intensive as far as management is concerned.
So if you look at the property itself now there’s one property that I’m thinking of in particular, it’s a motel property that was converted. It’s about 30 units. It’s here in Bakersfield. One of those aspects that we could add to this property is having an ATM onsite. So if you have an ATM onsite now, these people can go and get cash and they can use that cash to go and purchase other things on the property. On top of that, if you have Bitcoin ATM. So now if you do accept Bitcoin for something, you can go ahead and have people use that. There is a percentage of those transactions that comes off of that in profit. And there are servicers that will help you to set those up and then to profit share with you. You can also go and just buy your own and service your own. The other thing you can do is you can look at taking that ATM that you just put on your property and you can actually get the servicing fee from that. They’re going to have cash come out of that ATM and then you can have a vending machine. So now you have multiple vending machines on your property. Again, something that very little management and you can service yourself if you would like to, or you can have a company come in and service and profit share with you. Those two go together really well.
On top of that, if you have some excess space. Also look at adding or providing laundry because laundry you can go again and get your own machines or you can do a profit share. But having each one of these services is going to add at least a few hundred dollars a month to your income. And that in the commercial space is going to add to your actual property value. And that’s exactly what we’re looking for, is we want to increase the value of this property as high as humanly possible before we disposition it.
On top of that, you can also look at parking. So for example, there’s a building here in downtown where if you were to convert into apartments, there would be no parking except for street parking. And in fact, in many downtowns that I know this is a problem, you have apartment buildings that don’t have parking except for street parking. In this particular case, there is a parking lot behind the building. And so creating some sort of agreement with the owner of that property or even purchasing that property can increase your income by providing parking and charging a monthly fee for that.
Also, you can also look at adding cell phone towers and things like that or billboards, because these, again, are things that you just put up they’re serviced by another company, but you do retain a monthly income for that. And we actually have one property right now that’s located just off the 99 freeway. It’s a commercial complex and it’s about 16 units right there. You have so many cars driving back and forth every single day, tens of thousands of cars. Imagine if you had just a nice billboard sign that was up high in the air right off the freeway. People would pay you for that usage. And so you can obviously take an income for that.
So this is what we look at and think about when we get with our commercial owners, because we want to help increase that net operating income over time. And so if you are looking at something like that, feel free to give us a call. Consultations are all free for the first one and we’ll see you on the next one!
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