Passive income doesn’t come by easily unless you own an apartment building, in which case there’s almost unlimited potential for income-generation. Success isn’t always guaranteed when you’re in a real estate market where demand is high, but you’re hardly keeping up when it comes to drawing in tenants.
Whether you’re a first-time investor or you’ve just added a new asset to your growing real estate portfolio, it matters to consider improvements that can draw in tenant applications and ensure your vacancy rate remains tolerable, if not minimal. All it takes is knowing which of these improvements are worth investing your time, money, and effort in. If you’re unsure about where to get started, then the list below might be enough:
1. Refurbish and Repair the Exterior
Curb appeal is one aspect you must take seriously since most apartment hunters would consider moving in based on what they see on the surface. A rundown and grimy-looking facade could turn away young professionals and families wanting a safe and healthy environment. After all, it’s the exterior that gets featured on an online listing, and renters who don’t like what they see would rather keep looking even if the interior is worth checking out.
Freshening up your property’s curb appeal should be a priority, so consider giving the exterior walls a fresh coat of weather-proof paint and trimming down the vegetation to allow for a cleaner and more inviting look. It’s also a big plus if you are able to construct outdoor spaces decorated with flow boxes and hedges. As you do so, check to see if the roofing, windows, front door, and porch are repaired and rehabilitated. It would also be a good idea if you were able to expand your parking area and ensure accessibility to elderly tenants and people with disabilities.
2. Allow Ample Natural Light to Flood the Interior
When it comes to interior enhancements, bear in mind that renters are no longer attracted to cramped and dull living spaces typical of apartments in the past. You are in a better position to compete for tenants if you are able to lighten up the interior with sunlight. Not only will it help improve energy efficiency, but ample natural light can also lift up the mood of your tenants and create a livelier indoor environment.
Never underestimate what lighter-colored interior paint can do to your apartment building. It’s easier for the eyes and creates a calmer atmosphere, perfect for seniors and kids. Then again, the best benefit is the fact that shades of white and beige are able to amplify the effects of natural light. Further enhancing this is a minimalist layout that does away with bulky furniture that makes small spaces like hallways and kitchens feel cramped.
3. Pay Attention to In-Demand Features
Renters are drawn to apartments that match their needs. In Brooklyn, an apartment that uses an NYC lease guarantor can appeal to international tenants and young newcomers to the city. Likewise, young professionals looking to stay productive wherever they live would opt for an apartment that comes with a co-working space or café. Regardless, it is important to research the features most tenants want in an apartment.
Extra storage spaces are essential for retirees, so you might want to add personalized lockers that they can access anytime. Other tenants would prefer having everything within the building itself. It would be good to add a fitness center on the rooftop or the ground floor, while a coin-operated laundromat would be a deal-maker among busy professionals who don’t have the time to travel far.
4. Never Neglect Security and Safety
As much as you want to put all of your time and money on aesthetic improvements, you should also exert the same effort towards keeping your tenants safe and secure. Your cosmetic changes would go to waste if tenants are turned off, seeing that your property doesn’t have an upgraded surveillance system. It would be a benefit if they find out that your property already has motion sensors at possible entry points. To make the most of this, consider automating your security system by installing smart locks, remote-controlled alarms, and CCTV cameras.
People are also likely to move in if the apartment building has a doorman. Especially if you’re in congested urban areas where crime rates are higher than anywhere else, having a doorman gives renters the confidence in knowing they have chosen the right living space. In addition to that, doormen can help boost tenant retention, prevent costly disputes, and raise your apartment building’s value considerably.
Endnote
For your apartment to stand out in the local real estate market, focus on the upgrades that matter. It can get costly at first, but you will break even knowing that tenant applications keep flooding in.
