Matt’s Multi-Family Tips | Boosting Your Multi-Family NOI: Strategies for Increasing Rental Income in Hawaii

In Hawaii, where operating costs are high and inventory is limited, your property’s Net Operating Income (NOI) is more than just a metric. NOI not only determines the cash flow that hits your pocket, but also directly influences your property’s valuation and your refinance options. You can improve your NOI by increasing revenues and/or by decreasing expenses. This post focuses on the revenue side of the NOI equation, giving multifamily owners practical strategies to grow top-line revenue (without unnecessary capital expenditures).

1. Market-Based Rent Increases: Capture the Value You’re Already Providing

You may be leaving money on the table. If your rents haven’t kept pace with market conditions, your NOI—and your property’s valuation—are likely lagging too. In a state with no rent control like Hawaii, aligning rents with current demand is one of the most immediate ways to increase income.

Hawaii allows for market-based rent increases, with 45 days’ notice for month-to-month tenants.

Avoid any increase that could be perceived as retaliatory, especially after maintenance disputes or complaints. Transparency and fairness are not only legally necessary—they’re good business.

2. Reduce Turnover: Protect Your Revenue from Costly Vacancy Gaps

Every vacant unit is lost income, and the costs don’t stop there—repairs, cleaning, and leasing commissions add up. Keeping good tenants in place longer is one of the most reliable ways to improve NOI year over year.

How to do it:

• Create a positive tenant experience through timely communication and maintenance.
• Offer lease renewal perks—a ceiling fan upgrade or a small rent discount vs. staying month to month.
• Develop a reliable cleaning and maintenance system for quick unit turnovers when tenants do move out to minimize downtime.
  

Lower turnover doesn’t just stabilize income—it increases investor confidence and valuation during a sale.

3. Strategic Marketing: Reduce Vacancy Days and Fill Units Faster

Related to the above, since we know vacancy is your biggest revenue leak. Even in strong rental markets, days between tenants add up. Strong marketing also ensures you shorten that gap and stabilize income across all units.

To cut vacancy time:

• Use high-quality photos and floorplans in listings
  
• Offer virtual tours for relocation clients or mainland renters
  
• Launch referral bonuses to existing tenants
  
• Be flexible with showings—nights and weekends matter
  

The goal is to have applicants lined up before a unit is even empty. Less downtime means more revenue, and consistent occupancy drives long-term NOI growth.

4. Add Ancillary Income: Monetize Underused Space and Amenities

Not all income comes from rent. Ancillary income streams are often overlooked, but they can add thousands of dollars per year to your NOI—at minimal cost to you.

Easy additions include:

• Laundry rooms (coin or card-operated)
  
• Assigned parking or premium reserved spots
  
• Storage units in unused spaces or garages
  
• Pet rent or one-time pet fees (within Fair Housing guidelines)
  

These micro-revenue streams accumulate quickly—and because they’re recurring, they significantly improve your property’s investment profile.

5. Utility Bill-Backs: Shift Operating Costs Without Raising Rents

Utility costs eat into your NOI every single month. A fair and legal bill-back system allows you to recover those expenses without raising base rent—making your property more sustainable over time.

In Hawaii, both submetering and RUBS (Ratio Utility Billing Systems) are allowed. RUBS splits utility charges based on square footage, number of occupants, or other fair-use methods—no meter installations required.

Just make sure:

• Your lease clearly outlines the billing arrangement
  
• The system is applied consistently and transparently
  
• You’re complying with local and federal utility billing disclosure requirements
  

This one step can meaningfully reduce your monthly operating expenses and boost NOI—even if rents stay the same.

Final Thought: The Best Value Add Might Be the One You Already Own

Improving NOI doesn’t always require new construction, luxury finishes, or massive CapEx. Often, it’s about making better use of what you already have—adjusting rents strategically, managing turnover, passing through real costs, and leveraging overlooked income sources.

As always, make sure your strategy aligns with Hawaii’s landlord-tenant code, especially regarding notice requirements, fee disclosures, and utility billing transparency. If you’re not sure, a quick legal consult or lease review can save you from costly missteps.

Want help evaluating your property’s current income performance—or preparing it for market? Reach out anytime. This is what I do.