Investing in multifamily properties is an excellent way to build wealth and generate consistent income. With its growing population and robust real estate market, Calgary is a prime location for such investments. However, to maximize Calgary multifamily properties’ return on investment, your approach must be strategic.
This blog post will explore key factors to consider when investing in multifamily properties in Calgary.
Factors To Consider When Investing in Multifamily Properties
You should carefully assess several factors to increase your ROI on your Calgary multifamily property.
Location
Location is a critical factor influencing the success of a multifamily investment property. While Calgary's C-Train and public transit system make traveling the city for work a breeze, finding a community with desirable amenities, low vacancy rates, and potential for appreciation is a must. Calgary and Edmonton both offer diverse neighborhoods with unique benefits for investors.
Market Trends
Analyze current market trends like rental demand, population growth, and government policies affecting property taxes and building restrictions. In Calgary, the demand for multifamily properties has remained strong due to the steady influx of new residents and job seekers. This trend will likely continue, making Calgary an attractive market for multifamily investment properties.
Property Condition
Conduct a thorough inspection to evaluate the property’s current condition. Older buildings may require costly repairs or upgrades, impacting your return on investment. However, if the purchase price reflects these factors, there may still be opportunities for profits through forced appreciation/renovations.
Financing Options
Consider the various financing options available for multifamily properties. Interest rates, loan terms, and down payment requirements can significantly affect your overall returns. Partnering with an experienced Mortgage Broker and Licensed Property Manager can help you navigate the financial aspects more effectively.
Tips for Evaluating Potential Investment Opportunities
To maximize a potential multifamily properties’ return on investment, carefully evaluate each potential deal before deciding.
Analyze Cash Flow
Cash flow is the income remaining after you’ve paid all expenses, including mortgage, taxes, and repairs/maintenance. Positive cash flow ensures you’re making money from the property each month. A property management company can conduct in-depth property assessments to help you accurately project and increase cash flow.
Consider Future Value
Look beyond immediate returns and consider the property’s long-term potential. Are there planned developments or infrastructure improvements in the area? Is the neighborhood undergoing revitalization? These factors can significantly increase the property’s value over time.
Manage Potential Risks
Every investment carries risk. To mitigate these risks, conduct thorough due diligence and have a contingency plan. An experienced Property Manager can help you identify and develop strategies to mitigate potential red flags, such as tenant turnover, maintenance expenses, or economic downturns.
How AspirePeak Properties Helps Investors Achieve Their Goals
At AspirePeak Properties, we aim to help investors maximize Calgary multifamily properties’ return on investment strategies through personalized, data-driven insights and expert management services. From sourcing the right properties to overseeing tenant relations, we work closely with clients to ensure steady returns while minimizing risks.
Our team provides:
Free Rental Evaluations: We assess the best locations, market conditions and provide solutions to underperforming multifamily properties.
Advertising: We professionally market your rental property with premium advertising services such as professional photography, virtual tours, floorplans, measurements and virtually staging.
Leasing: We handle all showing requests, including booking and advertising open houses for new build multifamily properties for first-time occupancy. Our tenant screening process is thorough and includes pre-qualification questions, a comprehensive application that focuses on employment history and documentation, income verification, credit and background checks, and references.
Property Management: We take care of the day-to-day operations so you can focus on what matters most. Our services include monthly rent collection, move-in and move-out inspections complete with photos, regular inspections of both individual units and common areas, and coordination of repairs and maintenance, after-hours emergencies, and provide comprehensive monthly and annual accounting reports. For new build multifamily properties, we also handle tenant warranty items and possession walkthroughs with the builder.
With our help, you can confidently invest in Calgary’s multifamily properties and achieve your long-term wealth-building objectives.
Case Studies of Successful Multifamily Investments in Calgary and Edmonton
To better understand how effective investment strategies can boost returns, let’s look at two real-life case studies:
Our client in Southeast Calgary approached us with a newly renovated duplex he had been managing himself. After a challenging experience with a recent tenant, he was ready for a fresh start. Our team stepped in to assess the property and the market, with a goal to not just fill vacancies, but to boost his revenue.
We discovered that the first unit’s rent was underperforming by $300. We quickly secured a new lease with the existing tenant at the higher rate, bringing in more income. For the second renovated unit, we re-advertised it and found a long-term, reputable company within just 30 days that will use this unit to house employees when they stay in town, all while adjusting the rent to match the current market. This unit, previously renting for $1,250, was re-rented for an impressive $1,875!
In total, we achieved a remarkable revenue increase of $925 a month, representing a 34% boost from what our client was previously earning. With our expertise, we turned his duplex into a profitable asset once again!
Our client in Southwest Edmonton faced challenges with her 8-unit townhouse complex after it was mismanaged by another property company. Frustrated with ongoing tenant issues and unable to move forward, she discovered AspirePeak Properties—and that’s when everything changed.
Over the past year, we’ve transformed her property from a source of stress into a well-oiled machine. We tackled the inherited tenant issues head-on, which included one eviction, one early move-out, and one lease break, plus successfully re-renting two long-standing vacant units.
But it didn’t stop there. We ensured timely maintenance, streamlined rent collection, and implemented proper utility overages. With legally sound leases in place, three of our new tenants have already renewed for another year.
Thanks to our dedicated management, her 8-plex is thriving once again!
Get Your Free Rental Evaluation Today
By implementing these strategies and partnering with an experienced team like AspirePeak Properties, you can make informed decisions that maximize your ROI and ensure long-term success in Calgary’s multifamily property market.
If you’re ready to optimize your investments, let us help. We offer a free rental evaluation to assess your current portfolio and identify potential opportunities in Calgary and Edmonton.
Contact us today at (587) 997-1257 to schedule your complimentary consultation and take the next step toward maximizing your returns.
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