To reposition the building, you fi rst spruce up the exterior, focusing on the siding, roofi ng, and parking lot. You upgrade the landscaping, put new signage on the property, and create a nice leasing offi ce. You then work on certain strategic improvements inside the property. With the property now looking much better, it ’ s time to reposition those tenants. You get rid of the tenants who pay slowly, never pay at all, or are criminally inclined. Replace them with the tenant profi le that you are targeting. This is a process that can take several months, absorbing more time and money than the simple value - play of raising rents. The rewards can be quite spectacular, though. Not only can you fi ll your vacant units, but soon all of the units are paying substantially more in rent. Because your property value is calculated at a multiple of the net operating income, you ’ ve just skyrocketed the worth of the property. When you come across a property that fi ts the profi le I just described, you should defi nitely consider it for repositioning.