Property owners almost always increase the rent prices of their multifamily properties after renovating them. It should not be surprising since it costs property owners a lot of money to add amenities and upgrades. So, they want to offset the cost of the renovations by charging their tenants more money. Tenants are willing to pay higher prices if the amenities and upgrades appeal to them. Of course, they must be high-demand renovations, such as kitchen upgrades, bathroom upgrades, energy-efficient appliances, creative landscaping, living space expansions, Wi-Fi internet access, and more. If tenants see multifamily property units with these amenities, they will feel more comfortable paying higher prices. Think of multifamily property renovations as strategic investments. If you can research the rental market demands, you will know which renovations to make to attract higher-paying tenants.
Below are the top five types of renovations that lead to rent increases on multifamily properties:
1) Energy-Efficient Upgrades
Tenants want to save money on electricity wherever they can. They would even be willing to pay more for rent in order to save on energy. Consider installing energy-efficient upgrades in your multifamily property to satisfy this demand. For instance, you could install LED lighting, smart thermostats, energy-saving kitchen appliances, double-pane windows, and think insulation around the doors and windows. All these upgrades contribute to lower monthly energy prices.
2) Kitchen Upgrades
In addition to the new appliances, you should consider renovating almost everything in your kitchen. Tenants love well-designed kitchens that offer all the things they need and want. Some popular kitchen upgrades include installing new cabinetry, flooring, granite countertops, and artistic backsplashes.
3) Bathroom Upgrades
The bathroom is another popular room in your home that needs renovation. Tenants love stylish and functional bathroom designs with all the luxuries and amenities they desire to stay comfortable and happy. Consider popular bathroom upgrades like new fixtures, vanities, and tiles.
4) Flooring Upgrades
Flooring upgrades are essential for today’s rental market, especially if you have dirty carpets on the floor. More tenants today prefer flooring that is easier to clean and maintain. For this reason, the best flooring upgrades add flat and smooth surfaces to the floor, such as hardwood or vinyl tiling. Vinyl is the cheaper option but still provides the smoothness and aesthetics you might want. On the other hand, hardwood is more durable, unique, and stylish. Many tenants respond better and pay more for properties with hardwood flooring in them.
5) Security Upgrades
Tenants want to feel safe and comfortable. Installing a security system is one of the best ways to make tenants feel that way. You could install smart locks, security systems, or outside surveillance cameras to monitor and secure the premises. This renovation is particularly beneficial if your multifamily property resides in an urban or high-crime area.
Renovate Your Multifamily Property for Maximum Rent Increases
Do you need to hire a professional to renovate your multifamily property? Peak Renovations has an elite team of multifamily property renovators with the skills and experience to renovate any multifamily property. You can trust them to do well by fulfilling all your renovation requirements and expectations. Contact us today for a free project quote: cfaber@peakrenovate.com
