Improvements That Can Increase Value to Your Multifamily Investments

Older multifamily units can be challenging to sell against newer, more expensive builds. However, this doesn't mean they aren't worth investing in. On the contrary, they can offer a great return on your investment if you have the right add-ons.

Finding the right mix of upgrades to improve your property without incurring high overhead costs is critical. Experts and investors cite many upgrades that perform better than others. Here are some of these.

Remodel The Units

Many investors consider the interior to be the best place to begin.

A 2017 survey by Kingsley Associates and the National Multifamily Housing Council revealed that renters expect certain features in their units.

The results included upgraded appliances such as dryers and washers in units as well as dishwashers. Along with reliable, high-speed internet access at a fast speed and consistent reception from cellular phones, air conditioning was crucial.

Multifamily properties today must be aware of the 24/7 availability of millennials and their families and their cultures and constant need to have internet access.

Upgrading Common Areas

Investors can look at the potential for common areas in the property. You might think that this conjures up images of dorm-room living. However, IWG recently found that 70% of global workers work remotely at most one day per week. These numbers are likely to rise, so renters are becoming more attractive to have a reliable workspace.

Residents are continuing to emphasize collaboration and studying, so adding flexible spaces that can easily be manipulated will help retain and increase ROI.

Flexible walls can be used to open and divide the space quickly. You can create workspaces within individual units if there is not enough space.

Improve Curb Appeal

How the property looks can make it more attractive to tenants or drive them away. These exterior improvements don't usually come at a high price.

Many investors choose to invest in landscaping and green spaces. Upgrade any lawn space on a property. Tenants can enjoy green space by putting in fencing, lighting, grilling, and durable furniture, especially in urban areas.

Tenants can be offered space by investors to participate in a community gardening program. This is a great way for green space to be improved and to build community.

Use the limited space you have wisely. For example, potted planters placed strategically around your property can make a huge positive impact.

Implement Sustainability Practices

Although it is difficult to calculate the ROI of these practices, many renters consider sustainability important. Therefore, it pays to make improvements to older multifamily properties that were not designed according to today's energy-efficient standards.

Begin with energy-efficient appliances. Next, replace the old bulbs with more durable LED types and offer bike storage. You can then make more expensive upgrades such as insulation or upgrading to energy-efficient windows.

For renters who pay their own utilities, environmentally-conscious efforts that also help reduce utility bills can go a long way.

Embrace Technology

The role of technology is essential in our lives today. These features will attract potential tenants.

App-enabled heating or air conditioning are two examples of notable upgrades. In addition, some investors offer additional intelligent home features, such as voice-enabled personal assistants and heating and cooling systems.

It would help if you also considered FOB and keyless entry. Many tenants value these features because they offer enhanced technology and security features.

The most crucial multifamily asset to add is a high-quality package, postal and local delivery and delivery center amenities. This includes locker rooms and delivery to your home.

Coded or touch screen lockers can store packages and protect them until tenants have access to them. According to the NMHC survey, 57% of respondents expressed interest in package lockers.

Pet-Friendly

Investors have the option to reduce some of the risk of renting to pet owners by requiring non-refundable pet deposits and cleaning fees or adding "pet rent" to monthly payments.

The NMHC survey revealed that 68% of households surveyed had pets, and 33% of them cited their pet policies as a deciding factor when choosing where to live. This group also had higher retention rates because they loved their pet-friendly apartments.

We will continue to seek out wash and grooming stations, obstacle course parks, and other equipment that allows pets to exercise.

High-End Amenities

Convenience is a big plus.

It would help if you also considered dry cleaning lockers that allow residents to drop off their items and pick them up without any hassle. Valet trash is a service where residents place their trash outside their doors for emptying.

These amenities are becoming more common in high-end properties. However, investors can also incorporate them into smaller or older buildings. These amenities are a great deal because they offer tenants the same amenities as higher-end rentals but at a fraction of the cost.

The suitable areas can make a big difference in increasing the property's potential for rental income and market appreciation. Finding the right mix of properties that attract tenants and offer solid returns on investment is critical.