Every month it seems there are more and more new multifamily properties that pop up. This is resulting in older communities being renovated in order to remain competitive in the market. The most notable renovations are updating aesthetics, new amenities, and some structural changes that are part of the process to help these older communities stay appealing on the market. Being a multifamily property owner means that you need to be cautious and strategic in your approach to these types of projects, as they can result in units that renters don’t want or can’t afford. For the multifamily renovation to be successful it should benefit both the property owner and the tenants. Below are three potential mistakes to avoid while renovating.
Many property owners or managers overlook the opinion of the current tenants in their community. Listening to those tenants can help the property owners make the right choices that can lead to a successful multifamily property renovation. Make sure that you speak to your tenants, have them complete a survey, and then decide if going through with the renovations is a good choice. Going about it this way allows you to make choices on the designs and upgrades based on the preferences of your current tenants and not just generalized data. An alternative method would be to try out all the renovations on a vacant unit in your community. Once the renovations are complete, show them off to your current renters and get their honest opinions first hand.
Did you know that curb appeal has a big impact on a potential tenant? It’s like a first impression and you only get one shot to make it a good one. When renovating a multifamily property, it is crucial to include updates to the curb appeal. Not only does the curb appeal attract potential clients, but having well-groomed grounds can add value to the property. Your grounds don’t have to be award-winning but they should be attractive enough to make potential clients feel comfortable and happy about the apartment community. Even something as simple as repainting the facade of your buildings could have positive impacts beyond what you may expect.
As of 2016, about 66% of rental units in the U.S. are older than 30 years. How do you proceed with renovations on a property of that age? To keep it simple: cautiously. Updating an older property to keep it in competition with a brand new property is a real challenge. The cost of investing in new countertops, cabinets, and appliances might not bring the anticipated return. Keep in mind that by forcing upgrades that won’t be able to compete with newer buildings, it brings about the risk of pricing out current renters who are used to the current lower rent price.
Interested in renovating your apartment complex? Contact Alterra Multifamily Renovations through our website or call 615-438-5734 for immediate assistance.