Landlords and investors are always on the lookout for ways to increase the value and revenue of their properties, and apartment buildings offer plenty of scope for improvements. Apartment buildings can provide steady long-term cash flows, substantial returns on investment, and tax perks, and there are many opportunities for maximising return.
Here are 12 creative ways to add value to your apartment building investment:
Investing in Apartment Buildings: 12 Ways to Add Value
1. Improve Security Measures
Quality tenants are conscious of safety and security, so if you want to fill your apartments with desirable renters and limit the likelihood of criminal activity, beefing up your security systems is a must. Installing wireless security cameras for apartment buildings, intercoms, cameras, motion-sensor lighting, and smart door locks are just some of the ways to increase residents’ safety. Millennials are reportedly willing to spend as much as 20% more for a property with smart technology, particularly centred around security features.
2. Transform unused spaces
You may boost the value of your apartment building by converting unused areas into attractive, functional features. For example, transforming a rooftop or unused storage space into a shared garden and social area is bound to boost your building’s desirability and tenant satisfaction.
3. Create an outdoor space
Providing your tenants with access to the outdoors – even if it’s just a little lawn and a barbeque – can be a great way to improve tenant satisfaction and retention, as well as potentially justify higher rent rates. Amenities such as outdoor furniture, a grilling area and a fire pit can significantly boost the building’s desirability, providing residents with somewhere comfortable to socialise and entertain guests.
4. Add technology upgrades
While we’re probably not far off the luxury of a robot butler, we’re not there yet. Still, there are many cutting-edge modernisations that can add value to your building, such as high-speed internet and smart home technologies. These home enhancements help to create the level of modern living and comforts that can help you draw in and retain quality tenants. Smart locks and thermostats, smart lighting, state-of-the-art security systems – the options are endless, and virtually any high-quality technology upgrade is likely to add value and prestige.
5. Implement energy-efficient features
You don’t need a green thumb to be part of the solution when it comes to taking better care of our environment and planet. People are adopting eco-friendlier solutions in their droves, and renters are increasingly prioritising energy efficiency on their rental property shopping list.
By installing energy-efficient features, such as solar panels, LED lights and appliances, you can not only save on your building’s energy costs but attract (the increasing number of) environmentally-conscious tenants and potentially add value to the building for resale, too. Eco features are well-reported to be trumping many other factors when it comes to the appeal of a building (to both tenants and buyers), with an Admiral Money UK study finding that adding heat pumps alone can increase value by a staggering 10%.
6. Incorporate sustainable practices
Recycling programmes, water conservation measures, and low-flow plumbing are just a few examples of sustainable practices that can help save operating expenses and increase the value of your apartment complex. Sustainable building practices can help you attract and keep great tenants who value environmental responsibility. Moreover, by using eco-friendly procedures, you can lessen your impact on the planet’s natural resources.
7. Offer unique amenities
Apartment buildings that offer unique features like a pet park, safe bike storage, or a shared co-working space are more likely to be rented than those that don’t, and for higher rates. You can set yourself apart from competing apartment buildings by providing residents with services and features that they’ll have a hard time finding anywhere else.
8. Foster a sense of community
Tenant retention rates can be improved and the value of your apartment complex increased by encouraging a feeling of community among the residents. Movie nights, game nights, and potluck dinner gatherings are all great ways to bring your tenants together and foster a sense of belonging. Tenants are more likely to extend their leases and suggest your property to others if it makes them feel part of something unique and valuable.
9. Upgrade the common areas
The value of your apartment complex is heavily dependent on the condition of the common areas, such as the lobby and hallways. Adding new flooring, updated lighting, and chic furnishings to these spaces can do wonders for your building’s overall appeal. By designing an impressive, modern interior, you can significantly improve upon the quality of tenants that you attract. According to a study by The Royal Institution of Chartered Surveyors (RICS), communal area upgrades can increase the value of an apartment complex by up to 5%.
10. Improve the parking facilities
When looking for a new apartment, many people prioritise the availability of parking spots. Adding covered parking and even valet services to your property can increase its value by a considerable amount. Tenants who appreciate a stress-free living environment will value easy access to secure parking. Ensuring that they are adequately lit and secure is also paramount and an investment well worth making.
11. Implement a maintenance schedule
If you want to attract and keep high-quality tenants, you need to keep your building in a good state of repair. Establishing a routine of inspections and repairs can increase the longevity and resale value of your home. By staying on top of routine maintenance, you can stop small concerns from becoming big, costly headaches.
12. Offer flexible lease options
Renters who value flexibility in their housing arrangements may be attracted to your property if you offer the option of short-term leases or month-to-month agreements. By providing a selection of lease terms and conditions, you can ensure that your building appeals to a wider selection of potential tenants.
There are many creative ways to add value to an apartment building investment. Attracting and retaining high-quality tenants is a crucial element to achieving a lucrative property investment, and going that extra mile to provide preferential living conditions and amenities is key.