The risk of over-renovating is that you’ll lose your ROI. And while a complete overhaul can be eye catching, it may be nerve wracking wondering how many years you’ll have before what looks modern now will seem obsolete. Consider the following low-cost interior renovations that will attract and retain renters while keeping your budget under control.
Today’s renters are rich in young millennial couples who are pouring time into their careers rather than buying homes and starting families right away. This means your potential tenants are tech-savvy and looking for multifamily properties that are leaning into the future of what their smartphones can do. Retrofitting your units to smart technology justifies higher rent prices, can prevent wasted utilities, and can allow tenants to track when an individual is coming and going from the property via an app. Property managers can also control the temperature of and access to vacant units remotely. The multifamily market is prime for embracing smart home solutions. In the end, your tenants are paying more for security, convenience, and an Internet-of-things enabled property that allows them to continue to utilize technology the way they prefer.
Leasing agents will admit that informing a potential tenant that he or she will have to use shared laundry facilities on site creates hesitation. In lieu of a community laundry space, you’ll increase your appeal by adding washer and dryer hook-ups to unit renovations. And you’ll also be more likely to be in compliance with the Fair Housing Act of 1988, which requires that all common areas in a multifamily property be fully accessible by people with disabilities. This is tricky when it comes to older buildings and laundry, which makes in-unit laundry hook-ups make even more sense for the long-term.
There are three places your investment in in-unit washer/dryer capabilities will go: plumbing connections, ensuring you have “make-up air” for what the dryer is pulling from the unit, and venting the dryer. Hook-ups for stackable washer and dryers make sense for units where closet space is already tight. However, you can skip on some expenses by investing in ventless dryers instead. Ventless dryers work by recycling the heat they create, pulling moisture out of the air and then pushing dry air back into the drum. This means you don’t need to worry about exhaust or make-up air. An environmentally conscious decision like this could also make you eligible for Department of Energy rebates.
The number of trips a potential tenant will take through the kitchen on a walk-through is impressive. The kitchen is typically right off the entrance of the unit, which means it welcomes guests and serves as a central space for hosting. Keep in mind, though, that you don’t need a complete kitchen overhaul for a successful renovation. For countertops, consider butcher’s block or shiplap, which is inexpensive while still feeling contemporary and warm. Colorful kitchen backsplashes can be added using adhesive tiles that don’t require grout. Existing cabinetry can simply be painted and given new hardware to complement the shades you selected for the other upgrades.
Overall, you want to make sure you can justify your renovation costs with prospective renters who are comfortable paying higher rates. Low-cost value-add opportunities simply make sense for multifamily properties in need of renovations.
For superior multifamily interior renovations in the Southeast from contractors with extensive experience and professional service, contact Alterra Multifamily Renovations today.