Apartment buildings can be a major investment property, so they should be renovated periodically. Every well-planned renovation scheme can boost the establishment's ROI. In this post, we're giving you the ultimate dope on how to improve an apartment building's value.
We've seen countless apartment buildings where tenants recklessly use utilities, such as gas, water, and electricity. After vetting a couple reports, we've noticed one recurring complaint from owners saying that tenants not pay heed to constantly running toilets if they aren't paying for water. Which is why, every investment property, especially an apartment building, should introduce sub-metering-one of the biggest value-add activities. According to this value-add activity, tenants pay for a utility.
Dryers and washers
One of the most in-demand amenities that come with almost every rental apartment building, these days, is a washer-and-dryer system. So if a property owner is planning to add this specific amenity, the person should charge anywhere between $40 and $75 monthly.
If you happen to be a long-term buy-and-hold investor, then equipping a rental space with LED lighting is a complete no-brainier. That's because LED lighting system eats little to no energy. Additionally, such a bulb even lasts for nearly 25 years-that is, you're saving a lot of maintenance charges as well.
The income generated from a vending machine that's standing inside a rental apartment can improve the property's value. If you're thinking of a couple places inside your apartment building where a vending machine can be put, then here's our advice.
- Use common areas, such as a parking area, gym, or pool, to place a snack-and-drink vending machine.
- You can even use a couple other less frequented common areas, such as laundry rooms.
If property owners place a vending machine, they'll receive a percentage of the income from the vending machine owners/companies.
Tenants can easily pay more if an owner starts charging for the additional storage space that serves as an ad hoc parking spot for them. By charging additionally for a garage area, property owners can make more money easily and quickly.
Always reserve prime parking spots in an apartment building's garage for those who're willing to pay a prime price. The front and center spots inside a garage come under prime parking spaces, so you can charge for them accordingly. Tenants generally prefer these special parking spots, so landlords can even put a symbol saying "Premium Parking Spots for Rent" to lure more renters.
This is pretty conventional, and many property owners trust this as a great way to add value to their apartment buildings. The renovations can encompass exterior, common areas, and interiors for increasing demands.
Trash pick-up solutions
If an investment property has a full-time maintenance guy, then the person can be used for picking up trashes too. Every resident hates to carry heavy trash bags to nearby dumpsters. That's why renters usually look for someone who can haul such heavy, smelly trash bags-here comes a maintenance guy for their rescue. Property owners just need to find a person who's willing to carry others' dirty bags. Generally, such a person charges close to $20 per resident for one month, and many residents (renters) love this option.
If your tenants have pets and you aren't charging, then you're exactly missing out on a lot of additional income. In some areas, pet rents move as high as $100 per month.
Other service kickbacks
Some big-sized apartment building owners sign a contract with a cable or Internet service provider for supplying its services throughout the complex. For this task, the owners receive a small portion as a kickback whenever residents sign up for any of such particular services.
Because of these factors, it's necessary for landlords to implement each of the tips to boost their apartment building's value. Many of such great, workable tips can be accessed from the repository of every leading commercial mortgage lender.