Renovating your multifamily property can not only allow you to increase the value of your property but can also increase your rental rates, which is always an attractive idea for property owners. Not only that but it can also help you attract your ideal tenants, and improve renter retention. That being said, renovation projects are not a small feat and it can be easy to get in over your head quickly with projects if you aren’t careful. There is a lot of planning involved and you want to make sure your project goes as smoothly as possible. This will not only help stay on budget but will also keep from disturbing current residents. Here is some advice to consider:
Focus on Renovations with High Return on Investment
When it comes to renovations, getting a high return on your investment is often top of mind. Depending on your per unit renovation budget, you will want to be selective of the upgrades that you make. For example, gut-renovations and changing the layout of apartments is much more costly than changing paint colors and upgrading the finishes throughout. It’s important to identify renovations that will have a high impact for your tenants while staying within your budget.
Another important piece of advice is to make sure that you don’t over-renovate. Before you begin any renovation project it is very important to be aware of your market and comparable units in the area. A costly mistake can be investing more into a property than you will be able to get back through rental rates.
Plan for the Unexpected
As with any renovation project, when you begin construction there is always the chance that something will go wrong. Whether that is unexpected expenses or a drawn-out timeline, it’s best to have a plan in effect to account for different scenarios. It is also very important that you do your research on the contractors and companies you work with on the renovation so that you are very clear on who is responsible if any issues should come up.
Don’t Forget Amenities, Curb Appeal, and Model Unit Renovations
Beyond unit renovations, don’t forget about renovations to your leasing office, clubhouse, property maintenance and amenities. This is especially important if you will be doing your renovations in phases while tenants are living on property. During construction, it is important to try and keep current tenants happy and excited about the improvements, while also capturing the interest of new tenants. Improving the curb appeal of your property with exterior paint and landscaping can be a great way to improve your property. Upgrading the amenities you offer or adding new ones can also be a big selling point for tenants.
Hire a Professional
Renovation projects can easily become overwhelming and hiring an expert, like Modern Gem, who specializes in multifamily properties can put your mind at ease. They can take most of the project off your plate coming to you when decisions and details need to be made. They’ll also handle coordination with trusted-contractors so you know your property is in good hands. This way you can make sure your project goes smoothly from beginning to end.
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