Property owners face critical moments when they purchase, renovate, rent, or sell properties; careful decisions must be made to maximize their return on investment. What about those stabilized properties in your portfolio? You have a long-term lease with steady cash flow. Is there anything that can be done to increase your return?

The answer is a resounding YES! Review the five areas below to identify the cash left on the table.

1. Time to review your insurance policy.

Property owners should review their insurance policy at least once a year. Although the Massachusetts insurance market has remained relatively stable over the years, regularly requesting new bids can help you secure more competitive rates. Additionally, combining properties into a group policy can attract lower rates from better-rated carriers. You can also consider increasing deductibles to get a lower premium.

2. Apply for property tax abatement.

If you disagree with the assessors’ appraisal of your property’s fair cash value, you may want to apply for tax abatement. You can apply for the abatement on your own or consult with an experienced attorney; usually, the attorney’s fee is a certain percentage of the tax savings you will get.

3. Check the utility usage of your properties.

If you own residential properties, consider energy efficiency upgrades with improved insulation, energy-saving appliances, rooftop solar panels, etc. Visit the Mass Save website for rebate programs and check with your tax accountant for tax credits available.

If your commercial building has one water meter, consider installing sub-meters to break down water usage to each store for fast and accurate billing.

4. Proactive Inspections and Maintenance of your properties.

Regular inspection and maintenance can save you from major expenditures down the road. Ensure your sprinkler, fire alarm, security, and other preventive systems are in optimal working condition. Regularly inspect the building for any potential issues before they escalate into major defects. Establish a communication system with tenants to address issues they notice.

5. Consult with an accountant for tax savings

Check with your accountant for tax-saving strategies. From deferring gains by a like-kind exchange to increasing expenses by accelerating depreciation, some strategies can help improve your Net Present Cash Value and increase your property’s return.

Reach out to our office for an analysis of your investment positions. We look forward to discovering ways to increase your property’s return.