New residential four plex - Balcony or No Balcony

New residential four plex - Balcony or No Balcony

Member since 2022 · 12 posts · 3 votes

I am a newbie in the new construction world, and am currently looking to build a 4 plex ground up in Cornville, AZ which is in north phoenix. I have the initial plan drawn up already. But I am debating if I should build with balcony or not. 

The view is not spectacular, and each unit has 2 floors with a backyard. The intent of these units are for short term rentals. Here is the pros & cons I could think of, but would love to hear some thoughts from experienced multi-family builders & owners

Here are the pros/cons of having a balcony in my opinion. 

Pros

1. Potentially a nice feature as part of short term rental offering

2. Make the building looks better than the one without balcony?? I look around apartment building, almost everyone has balcony regardless the view.

Cons:

1. taking away livable square footage

2. More maintenance on the balcony

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  • Rental Property Investor · Washington, DC · Member since 2018 · 198 posts · 169 votes
    2y

    Iris, congrats on taking on this project. I would evaluate the decision to add a balcony based on economics and the ability to attract good tenants alone. Do most new builds contain balconies in the surrounding area? Will a balcony make it easier to rent and/or command a higher rent?

    If the answer to any or all of these questions is no, or you are unsure, then I would avoid the hassle (and future maintenance) of adding them.

    Another con to consider is added liability. Folks could fall off and injure themselves etc. 

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Iris Wu:

    I am a newbie in the new construction world, and am currently looking to build a 4 plex ground up in Cornville, AZ which is in north phoenix. I have the initial plan drawn up already. But I am debating if I should build with balcony or not. 

    The view is not spectacular, and each unit has 2 floors with a backyard. The intent of these units are for short term rentals. Here is the pros & cons I could think of, but would love to hear some thoughts from experienced multi-family builders & owners

    Here are the pros/cons of having a balcony in my opinion. 

    Pros

    1. Potentially a nice feature as part of short term rental offering

    2. Make the building looks better than the one without balcony?? I look around apartment building, almost everyone has balcony regardless the view.

    Cons:

    1. taking away livable square footage

    2. More maintenance on the balcony


     depends on the values. we have 7 zips we build a triplex in and some of them we have considered adding balconies if the market calls for it. another way to do it is on the back where the walk up is if they are truly apartments you can add it there. depends on the level you are after. 

  • Member since 2022 · 12 posts · 3 votes
    2y

    Thanks Robert and Michael for the responses. I am glad to hear that it should still be market driven. I just don't want to build a multi-family building and later found out that it is an odd choice not to have balconies. 

  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Iris Wu:

    Thanks Robert and Michael for the responses. I am glad to hear that it should still be market driven. I just don't want to build a multi-family building and later found out that it is an odd choice not to have balconies. 


     balconies don't add value, just an amenity. they don't help you get higher values. I would argue there's more important things than a balcony. interior finishes. we build a triplex stacked over and over and no balcony. on our infill single family home we have two rooftop terraces and covered balconies that we are designing now to sell quick. it's more of an amenity to compete and get a quick sale. 

  • Member since 2022 · 12 posts · 3 votes
    2y

    Makes total sense. Thanks for the insights!

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