Top 10 Ways to Add Value to Apartment Communities
If you are on this blog then it is fair to say you are interested in multifamily or apartments for your portfolio. This particular type of real estate investing is a great choice because it allows you to have greater control over your portfolio’s profitability by adding value to the property. How so?
When you purchase multifamily properties, an efficient way to increase your property’s value is to take action on multiple fronts. Below is a list of the value-add opportunities that will show better returns in months:
1. Property Updates
Surprisingly, a fresh coat of paint, landscaping, light fixtures, door handles, and drawer pulls will spark life into a property that would otherwise be humming along. A simple trip to the hardware store may be all you need to put a new perspective on a property that is currently performing fine. It would also be a way to show that you are in control of your property, it has your attention, and to show the tenants you take pride in ownership of the property. It is also a subtle way to telegraph that you may be trying to keep up with the market.
Repairing that running toilet, door hinge, dishwasher, etc. goes far in keeping your properties in good shape and again, signals to your tenants that the property is an asset you care about. Simple everyday fixes go a long way to maintaining value and keeping your property market-ready.
Having centralized management who is responsive to tenants goes farther than anyone in the real estate game really gives it credit for. With multifamily units, the management is the face of the owner. Thus, when a smiling and responsive manager or management team answers that service call, responds to a question, or just pops by the unit to ask if everything is going well, that leads to tenant satisfaction, which leads to tenants staying longer and your door turnover going down.
It’s 2021 and everyone has a smartphone in their pocket, hand, or purse. Installing software to allow tenant interaction for service calls, rent payments, and communication with the property management lends itself to making the rental process more effortless for the tenants and the management. Here is a blog post with more ideas on how to use technology to improve your multifamily investments.
Sometimes parking can be a hit or miss endeavor for the tenants and their guests. If there is no space that is another issue, but if you have the space, these simple steps will make everyone’s life easier and lead to better tenant retention.
- Keep the lot(s) smooth and clean;
- Keep the striping clear and bright;
- Have lights for accident prevention and the safety of your tenants;
- Make sure there is access for the elderly, and those with additional needs; and
- Provide shade to keep cars cool and safe.
Installing pay-per-use laundry equipment is a hidden gem in the multifamily space. Laundry equipment now can be purchased to accept coins, credit cards, debit cards, or even laundry-specific money cards that can be loaded with cash on-site. Not only does this generate more money for the property, but it also engenders loyalty to the property and the management who are taking care of the needs of the tenants. The washing and drying units are right there, with detergent and fabric softener that can be purchased by the box.
I have dogs. I love my dogs. I spend money on my dogs just like the rest of us. I expect to pay pet rent if I am renting. Charging a pet deposit and adding $25 a month is more than acceptable to any pet owner. Also, a dedicated pet area for Fido’s daily droppings, playing fetch, or socializing is greatly appreciated by pet-owning and non-pet-owning tenants alike. These types of value-adds also cut down on the nastiness that can be discovered when a tenant exits the unit if those things are not provided.
Extra storage, whether it is a storage facility or an extra closet on the patio, is a value-add most do not think about. So many tenants have no place to keep that Christmas tree they put up every year, among other items. This extra space also makes the property more valuable.
Many multifamily properties pick up the tab each month for water or some other utility. By individually metering the units and billing tenants for their individually measured utility usage, you will SAVE A TON of money.
10. Trash Pick-Up
Without overstating the obvious, people produce trash. Make it easier for them to get rid of their trash and have it hauled away. Convenient trash cans, trash shoots to a bigger receptacle, or being able to walk to the driveway’s end with a provided can will keep your property clean and help to invest your tenants in the cleanliness of the property.
These simple steps are effective for landlords to control and increase property value. Moreover, these steps help control tenant retention and create a community that is valued in your area and shows value in your monthly returns. Best of Luck out there!
About the Author:
Brian T. Boyd is a licensed attorney in Tennessee who handles commercial, real estate, construction, and business issues for clients. He and his wife also invest in real estate. To learn more about Brian, visit www.boydlegal.co.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.