Factors That Affect Multifamily Development

There are a few definitive trends that affect the development of multifamily properties.

In this day and age, trends that were once appealing and fresh for the multifamily market can become dated and obsolete in a matter of months. However, these trends will always remain consistent when appealing to potential tenants despite some alterations here and there.

That said, let’s take a look at a few important factors that are affecting multifamily development.

Location

Location is always an important consideration in multifamily investing. You will need to consider the amenities that are available in the community as well as data such as the average rent and employment rate. Locations that indicate positive numbers across these factors are usually a goldmine to first-time investors, but a little caution can go a long way. You should be able to do extensive research on the location first before you start investing.

Space and size

People still think that the bigger the property you acquire, the larger the income that flows in. This is true in some respects, but size isn’t the only factor that determines cash flow. Not many people rent out an apartment they cannot afford, much so if it lacks access to quality amenities. The size of the asset will only cause you to pay more in taxes. So, before financing your first apartment complex deal, focus more on the value it gives to tenants.

Technology

Tenants, especially those belonging to the Millennial Generation and Generation Z, have certain preferences, most important of which is connectivity. Considering that we are in the age of digital transformation, it’s important to include such amenities as high-speed internet and coworking spaces that cater to freelancers. With such amenities in mind, it would be easier to appeal to younger generations who have become so responsive to the idea of renting.

Pet-friendly

Many potential tenants are eager to rent out a property with a furry companion by their side. Pet-friendly properties are what draws in these tenants, all it takes is a few accommodations, preparation, and acceptance of potential problems that may arise from a tenants’ pets.

Keep your multifamily up to date with these factors for a lucrative multifamily portfolio!