Lititz, PA · Member since 2013 · 595 posts · 272 votes
Hello,
This is a small city where there is a lot of new construction of new apartments. The new apartments are all filling up quickly at the highest rates in the area. They are attracting higher quality tenants.
The majority of other apartments in the town are older housing stock that has been converted to apartments. The rates are lower. None-the-less I am wondering if the quality tenants were previously in these apartments and now are going to the new construction. This would mean less desirable tenants for the older stock.
Any insight into what effect new apartment construction can have on the tenant base for these older apartments and how to compete/ stay relevant would be appreciated.
Sounds like you're watching your comps pretty close which is great!
We're finding that older units have to be clean and appealing in order to get similar rents. The issue with a lot of the apartments that are going in is that they have additional amenities like gyms etc. that they offer in addition to housing.
If you're competing with that type of product you need to make sure you price accordingly because you don't have the same draws. A potential advantage you have against larger apartments might be better management. You can offer monthly cleanings or other incentives that those bigger buildings may not be able to offer. Get creative!
All things considered, you should still be screening your tenants properly to make sure you get someone who's going to be a good fit. Make sure you're up to date on the fair housing and discrimination laws in your area and beef up your rental application.
Sounds like you're watching your comps pretty close which is great!
We're finding that older units have to be clean and appealing in order to get similar rents. The issue with a lot of the apartments that are going in is that they have additional amenities like gyms etc. that they offer in addition to housing.
If you're competing with that type of product you need to make sure you price accordingly because you don't have the same draws. A potential advantage you have against larger apartments might be better management. You can offer monthly cleanings or other incentives that those bigger buildings may not be able to offer. Get creative!
All things considered, you should still be screening your tenants properly to make sure you get someone who's going to be a good fit. Make sure you're up to date on the fair housing and discrimination laws in your area and beef up your rental application.
This is kind of the nature of things, the newer buildings attract the most rent and best tenants and older buildings get older, more run down, and less appealing to the top renters. Good advice above, focus on safety, cleanliness, and being an attentive smaller landlord. Keep up with upgrades. Be a good value for the money. I would also think about whether there is anything you can do to make your building unique. Accent wall in a trendy color in the units? All pets or no pets? Any other niche?
Offer value. But also tout your new roof, kitchen, bathroom, updated plumbing, wiring, heating, with great pictures. Show a picture of a couple running down the beach with a dog. That kind of stuff.