Top Four Apartment Building Improvements that Will Guarantee You More

Capital improvements of rental buildings will certainly help landlords increase their incomes, but only if these are managed in an intelligent fashion. Nonetheless, capital improvements will guarantee landlords a steady flow of tenants and higher retention rates. In nowadays’ investment climate, these variables seem to be difficult to acquire, but with a little guidance and help from professionals, the recipe for success is guaranteed.

What is a capital investment?

Simply put, capital investments are those investments that will benefit the entire apartment building, tenants included. This means that whatever improvement you plan on bringing, it should make the lives of all your tenants easier, and their tenancy – a pleasant experience. Capital investments also mean that an entire system must be replaced – or created – repairs not qualifying for it. Nonetheless, major repairs will also help landlords attract more high-quality tenants, always ready to spend a little extra for some quirks. Common capital investments are the heating system, facades, windows, a pool installation, roof replacement and elevator replacements. Keep in mind that if you plan major investments, you have to inform the Division of House and Community Renewal and wait for their approval. The next legal step to take is sending an official note to all your tenants at the time and inform them regarding the procedure, duration and the rental raise requested from now on. Also, you must remember that even your investment qualifies as a capital investment, you cannot raise the rent by more than six percent per year.

Below you will find some investment ideas that will guarantee you a steady flow of tenants, due to increased comfort levels and extra features brought to your apartment building.

Pools – outdoors or indoors ones are a great starting point

Pools – especially in hot climates – are desirable additions to all rental properties, whether we talk homes or apartment buildings. In the South, few are the rental buildings that lack such a feature. If you plan on having a steady tenant flow and increase the retention rates of your tenants, make sure to consider this type of investment, especially if your apartment building is situated in a rather hot climate. A recent survey discovered that millennials are more likely to spend some extra money on a rental, or buying a new home, for that matter, if the property is equipped with a pool. However, before jumping to action and discussing with a pool installation company, you should establish the demographics of your target audience. But generally, all age groups are equally interested in such additions, with the exception of a small percentage of parents with small children. Many see these additions as drowning hazards. But nonetheless, there are some good alternatives when it comes to swimming pools and safety equipment available on the market. If you invest in some safety equipment specifically designed for keeping children at bay, all age groups will be equally pleased with your addition. Take into account installation and maintenance costs, and assess if you can afford such improvements. However, many landlords seem to recover the initial investment quite fast.

Façade and curb appeal improvements

No matter how appealing your apartments are if your building lacks the looks overall, potential tenants will skip on your offer quite fast. Real estate brokers complained on multiple occasions, that while the apartments in their portfolios were amazing and clients were interested, many declined the option due to a lack of curb appeal. This way, you want to make sure that you bring some improvements to your apartment building’s facades, in order to make more and more potential tenants more interested in your property. Make sure to follow all the regulations in force and discuss with all the authorities involved before taking any action. Not only the façade is a determinant factor that might blow away a rather great deal, but also is the lobby. A shaggy lobby with crusty layers of paint will keep tenants away for sure. Make sure to make your lobby as appealing as possible by painting it professionally, in a night, neutral colour. Also, the lighting present in this area should be an appropriate one, in order to increase the confidence levels of your potential clients, and induce a safety feeling. Not all potential tenants feel daring enough to navigate dark, poorly-lit corridors in a new, unknown location.

Modern, energy-efficient windows

Cheap, old windows will not only keep potential tenants away from your property, but they will also increase the energy expenses. And generally, tenants do pay attention to their bills as well when renting an apartment. If this is the case of your apartment building, you should start navigating your options when it comes to modern, energy-efficient windows. Yes, this is a big investment, especially if you own a multiple-story building, but on the long run, the investment will pay off by increasing the number if interested new tenants and tenants willing to renew the yearly tenancy contract once more. Retention is the key in the industry, and if you don’t put any kind of efforts into making your tenant’s experience more enjoyable, you will most like lose some of them – and win yourself some bad publicity.

Coin-operated laundry and vending machines in multi-family properties

First of all, you must know that this does not qualify as a capital investment, but nonetheless, it will certainly increase your revenue. Generally, tenants would rather spend some coins for a communal laundry machine than investing in a machine on their own. This solution works amazingly for multi-family properties, as many also lack the necessary space to install such appliances. This is also a great solution to increase your property’s revenue rates if you don’t plan to invest in multiple properties. Furthermore, you will have tenants flowing in, because, in many apartment buildings, these additions seem to disappear, lately.

These are four investments rental property owners could make if they want to preserve or even improve their position in the local rental market. Make sure to assess your needs and act in consequence.