Attracting Tenants for older apartment building

8 Replies

Hi everyone I had an idea on attracting tenants to my older style apartment building, which doesn't offer any amenities. I'm sure that someone else is doing it already or has in the past.

I'm thinking about offering my units at standard market value, but say all "Electric, Gas and Water are included". 

I have 20 units and they all have the small wall ac/heater units and a small gas stove and the rooms are all studios and 1bd/1ba units. I

It's an older building in the 60's, doesn't have all the amenities of the newer places around.

Any suggestions or feed back would be great!

gas water and electric included ?  are they separate metered?  Thats risky 

Never include utilities in the rent, Your tenants will bankrupt you if they do not appreciate and respect the cost of utilities. Your plan is a very poor business decision in a industry where every investors is seeking properties with separate utilities to allow them to be placed in tenants name.

Terrible idea. Don't do it.

@Thomas S. and @Matthew Paul

Thanks for the feed back. All the units have there own meter for gas and electric meters , water is the only one that is not separated. Of course, I was thinking about people not respecting the program which could result in more then what I budgeted.

I have some small funky units with few amenities too, in a building twice as old! Fortunately they're in an area that has gotten hotter and hotter. You just need to do what you can to fix them up without breaking the bank and find the right price point. I've found that nice flooring, fixtures and kitchens will allow some people to ignore horrible walls and a sloping floor.  

I would have a reduced rental price before including utilities. If your property is “less desirable” the only way to really overcome it is with exceptional customer service and value. Market rent for A won’t work out we’ll if your actually selling B. 

I saw it somewhere, when landlord pays for the utilities, the bill is usually 50% higher than when tenants pay their own utilities.

Why do you think that your older style building could not be improved to match other buildings in the market? What about adding free wifi, but claim that it's best-effort, so you don't spend a lot of time to troubleshoot their internet problem and slow speed if it happens. Unless they are heavy user and demand high-speed internet, free wifi in the building would work perfectly for them and save at least 50 bucks in their pocket.

Originally posted by @Aaron C. :

Hi everyone I had an idea on attracting tenants to my older style apartment building, which doesn't offer any amenities. I'm sure that someone else is doing it already or has in the past.

I'm thinking about offering my units at standard market value, but say all "Electric, Gas and Water are included". 

I have 20 units and they all have the small wall ac/heater units and a small gas stove and the rooms are all studios and 1bd/1ba units. I

It's an older building in the 60's, doesn't have all the amenities of the newer places around.

Any suggestions or feed back would be great!

Originally posted by @Minna Hu :
I saw it somewhere, when landlord pays for the utilities, the bill is usually 50% higher than when tenants pay their own utilities.

Why do you think that your older style building could not be improved to match other buildings in the market? What about adding free wifi, but claim that it's best-effort, so you don't spend a lot of time to troubleshoot their internet problem and slow speed if it happens. Unless they are heavy user and demand high-speed internet, free wifi in the building would work perfectly for them and save at least 50 bucks in their pocket.

Originally posted by @Aaron C.:

Hi everyone I had an idea on attracting tenants to my older style apartment building, which doesn't offer any amenities. I'm sure that someone else is doing it already or has in the past.

I'm thinking about offering my units at standard market value, but say all "Electric, Gas and Water are included". 

I have 20 units and they all have the small wall ac/heater units and a small gas stove and the rooms are all studios and 1bd/1ba units. I

It's an older building in the 60's, doesn't have all the amenities of the newer places around.

Any suggestions or feed back would be great!

Thanks for the feedback. There other apartments in the area that are newer and have a lot of amenities at or around the same price. 

On the Utilities that is what I was going to do. Maybe not 50%, but more like20% higher. 

It was going to be a flat rate of $170 a month. Thats how much I would need if was 100% occupied per unit. If it’s only 80% occuppied it would still be $170 for each tenant. 

Offering free wifi sounds like a good idea

I’ve found people are less concerned about things being dated then they are about cleanliness. We have added crown molding, two tone paint, wider baseboards. We use the wood look vinyl plank flooring. Also like to replace the toilet with the taller style. Windows and screens are cleaned and the whole apartment is spotless. 

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