7 Practical Ways to Increase NOI in Your Multifamily Property

In multifamily real estate, Net Operating Income (NOI) is one of the most important metrics there is. It’s the heartbeat of a deal’s performance—and directly impacts your property’s value, cash flow, and resale potential.

The good news? There are many ways to improve NOI beyond just raising rents.

Whether you're operating a value-add deal or looking to optimize a stabilized asset, here are 7 practical, proven strategies to increase NOI—starting today.

1. Increase Rent Intelligently

Yes, the obvious one—but it has to be done strategically.

• Conduct regular rent comps to stay aligned with the market.

• Use lease trade-out tracking to maximize renewals and new leases.

• Offer modest upgrades (fixtures, paint, flooring) for "lite" value-add that commands higher rent without heavy capex.

💡 Pro tip: Don’t just raise rents across the board—use data to identify unit types or floor plans with the most pricing power.

2. Reduce Turnover Costs

Vacancy and turnover kill NOI. Focus on retention:

• Offer renewal incentives (e.g., upgraded appliance, minor upgrade).

• Improve communication and service levels.

• Reduce non-renewals through early engagement with residents.

A resident who stays another year saves thousands in turn costs and downtime.

3. Implement Utility Bill-Backs (RUBS)

Utility reimbursements—through RUBS or submeters—can recover a large portion of water, sewer, gas, or trash costs.

• Check local laws for compliance.

• Notify tenants properly and phase it in where needed.

• Track collections and adjustments.

💡 Common recovery: $50–$150/unit/month depending on region and utility mix.

4. Add Revenue-Generating Amenities

Small features can add recurring income:

• Reserved parking or covered parking fees

• Pet rent (not just deposits)

• On-site storage units

• Vending, laundry machines, or package lockers

If you have unused space, think creatively—could it be converted into a rentable garage, a private yard, or a bike storage area?

5. Optimize Operating Expenses

Improving NOI isn’t just about revenue—it’s also about controlling costs.

• Rebid recurring contracts annually (landscaping, trash, insurance)

• Audit utilities and consider energy-efficient upgrades (LEDs, smart thermostats)

• Monitor payroll hours and vendor productivity

• Review property tax assessments for appeal opportunities

📊 Every $1,000 in annual savings adds ~$20,000 in value at a 5% cap rate.

6. Improve Collections and Reduce Bad Debt

Bad debt eats directly into NOI. Tighten up your rent collection processes:

• Offer multiple rent payment options (online, recurring ACH, etc.)

• Enforce late fees consistently

• Screen tenants carefully at lease-up

• Work with an effective collections partner when needed

The earlier you intervene, the better the outcome—for both NOI and residents.

7. Lease More Efficiently

Vacancy days = money lost.

• Use automated leasing software and scheduling tools

• Ensure quick unit turns with a standard punch list

• Pre-market units before move-outs

• Track lead-to-lease conversion metrics

The faster you lease, the less downtime you eat.

Final Thought

Small tweaks across operations, marketing, and resident experience can compound into meaningful NOI growth. Whether you're syndicating deals or managing long-term holds, improving NOI increases cash flow and asset value—which is a win across the board.