I own an apartment complex that has been a huge value add project so far. I have finished off the front five 3-bedroom apartments (started with studs) and completed a cosmetic remodel of the back 5 Apartments. I have a huge lot 1.5 acres and will have completed an on site laundry facility and am drawing up a 12 unit storage facility. In 2019 I will be using RUBS to externalize Water/Sewer/Garbage back to the tenants. Any thoughts on how to add more value? I have an area that is about 20x20 and another that is 40x80, and another that is 40x120. Per the county I am tapped on adding housing units, my current 12 are grandfathered in.
Kai, I have a 12 unit as well and have been wrestling with the same considerations-value add and generate more rent. Kitchens and bathrooms offer big pay-back as do garages. I have not had enough turnover to get in and do much, just paint and flooring. Sounds like you have made a considerable investment in your project. Are you measuring the incremental rent return on your improvements? In my case I have decided to do minimal/moderate improvements, keep this building pretty much as it is since I am able to increase the rent quite a bit anyway, and do a repositioning with my next MF investment. All the best with your investments!
I have unfortunately sunk way way way too much into this place. What was done really needed to be done. The place was more run down than anything I have ever worked on but the location makes it all work out. I have just started to keep track of the return on investment starting with the storage unit. It was really the only "extra".
Do you have garages? What do you charge?
I will call insurance. I did that last year with flood and shed about $3,300 in annual premium but could do it on the fire ins. policy.
I like the playground idea. I was offered one but I have had too many fires to put out to go pick it up.
I hope the tax man avoids my property for the next 10 years...
I was kicking around pet rent but my wife is super opposed to it. Is it a standard for all apartment owners?
I appreciate the input!
This is nickel and dime stuff but everything counts.
1) could you contract with the cable company to get a kickback for tenants who sign up with them
2) could you sell renters insurance to your tenants and get a small kickback
3) if your electric is deregulated, you could get a small kickback from the electric company for choosing which plan the tenants use.
A lot of this may be regulated by the state you are in so not sure if it will work. Also, it is di-minimus income but easy to do once it is in place
Originally posted by @Justin Thiesse :
@Kai Van Leuven I personally have done this too. I would scrap the storage units and build garages. This will attract better tenants and rents I would not want non tenants on the property renting storage units. I have also raised laundry prices to match any nearby laundry mats. A secure building will also bring higher rents.
What sizes did you do on the storage. I was thinking like a 12x16 each or a 12x20 each. So a building that was 144x20 or 144x16. Also, did you steel frame or stick built? I am leaning towards stick. Can you tell me about your project and what type of results you had? Thanks.