Proactive management strategies, which look to prevent problems before they arise, and property improvements are examples of internal factors that effect a property’s value.
Proactive management strategies, which look to prevent problems before they arise, and property improvements are examples of internal factors that effect a property’s value. Making improvements may increase its intrinsic value and purchase price, as well as its ability to earn income during the holding period. This could include updating cosmetic details, such as flooring or appliances in a multi-family unit. Though updates involve many expenses, they tend to allow you to charge higher rents.