How to Raise Cap Rates for Residential Rentals?

A young realtor I coach asked me this question today. 

Here is my answer (sorry about it being all CAPS):

ROMAN, 

THE CAP RATE IS GROSS REVENUES LESS OPERATING COSTS
(EXCLUDING MORTGAGE PAYMENTS) DIVIDED BY PROJECT VALUE/COST/PURCHASE PRICE/SELLING
PRICE. 

TO INCREASE CAP RATES YOU: 

1. FIND WAYS TO LOWER YOUR COSTS (FOR EXAMPLE, WE’VE DONE A TON OF SUCCESSFUL MPAC APPEALS: PROPERTY TAX ASSESSMENT REVIEWS RESULTING IN SIGNIFICANTLY LOWER REALTY TAXES),

Raising London’s Tower Bridge, Easier to Do than Raising Cap Rates

2. FIND WAYS TO INCREASE
YOUR RENTS (FOR EXAMPLE, BY ADDING AN IN-HOME SUITE OR A MICRO OFFICE/RETAIL/WORKSHOP SPACE IN A GARAGE), 

3. INCREASE RECOVERIES (FOR THINGS LIKE PROPERTY MANAGEMENT, ADMIN FEES,
UTILITIES, COMMON AREAS, ETC), 

4. ADD MARGINAL REVENUES FOR FACILITIES LIKE STORAGE SHEDS AND SERVICES LIKE TECH PACKAGES, COIN LAUNDRIES, PARKING, CLEANING AND MEAL SERVICES, ETC, 

5. LOWER
YOUR VACANCY RATE AND INCREASE THE AVERAGE LENGTH OF TENANCY (BECAUSE TENANT
CHURN IS COSTLY IN TERMS OF NOT ONLY VACANCY BUT ALSO CHANGEOVER COSTS LIKE CLEANING, REPAINTING) BY MAKING YOUR PLACE A MORE ATTRACTIVE HOME WITH PICNIC TABLES,
BBQ, PATIO, BALCONY, RAISED GARDEN BEDS, NO-HASSLE SNOW SHOVELING, LAWN MAINTENANCE, ETC.

@ PROFBRUCE