Attracting the best tenants is the goal of every multi-family complex owner. You want the kind of tenants that respect the property and make it their home for a long period of time. Most property owners spend a lot of money on renovations to make their properties stand out from other apartment buildings. Although renovations can be costly, if you approach them properly, they can be a great investment.
A property with an attractive gathering space has an advantage over multi-family complexes without a community room. If you are considering doing improvements at your complex, consider the advantages of adding a clubhouse or a community room. A clubhouse is an investment that your tenants will enjoy if it is constructed properly. If you encourage people to hold events at the clubhouse, it will help build a sense of community which helps you keep your best tenants. Some properties have annual or semi-annual tenant events so that new and existing tenants can get together and meet one another.
If you already have a community room or clubhouse, is it time for renovations? Evaluate the room carefully. Is it modern? Does it have it have comfortable and ample seating for a gathering like a baby shower, graduation party or a book club? Is the seating in good condition? Even if you have ample seating and tables, you should check the condition of the furniture. Shabby furnishings will make the room appear neglected.
If you are considering a remodel like adding or upgrading your clubhouse, think about your tenants’ needs while designing it. An experienced multi-family construction project manager can help you plan a clubhouse that will be attractive and functional. You may consider adding a small kitchenette or a wet bar for events. Some clubhouses have multiple rooms so that more than one event can take place at the same time. Another option is one large room that can be divided into smaller rooms with a removable wall. The more multi-functional the room is, the more useful it will be.
If you have a great clubhouse on your multi-family property, it can be an advantage in more than one way. Good tenants will appreciate a high-end clubhouse or community room. They can hold events like baby showers, graduation parties, community gatherings, barbeques and many other gatherings. This will help you retain your best tenants. It’s also an advantage in terms of attracting new tenants. This type of feature helps your property stand out from other rental communities in a positive way. Many landowners invest in renovation projects that upgrade their clubhouses from average to exceptional.
If you are considering a remodeling project involving your property’s clubhouse or community room, you know that the costs may be significant. Before you decide the renovation is too expensive, consider the opportunities a high-end clubhouse or community room can provide. It’s not just a perk for your tenants. You can actually create a revenue stream using your clubhouse. How? You can rent the clubhouse out to people besides your tenants. People are always looking for convenient venues for parties and gatherings. You can advertise your clubhouse as a possibility if it is nice enough to attract renters. Some property owners also charge tenants if they hold gatherings in the clubhouse.
Renovation becomes much less daunting if you know the clubhouse will pay for itself over time. To make the property attractive, it will have to stand out from other potential venues. You should consider a variety of amenities when you are planning a renovation. The more amenities you can offer, the more likely it is that you’ll attract business.
The best amenities are those that make it convenient for renters to hold a fun and tasteful event. An updated kitchen with an oven, microwave, sinks and a full-sized refrigerator make it easy for party givers to prepare and serve refreshments. It’s also a good idea to provide counter space for food preparation. The clubhouse should also have adequate and clean restrooms. Seating is also important for gatherings. Tables and comfortable chairs should be available for guests. You should include all these things when you plan a remodel.
When you own a building with apartments, the maintenance work is different than owning your own home. There are different elements which need to be kept updated too and where you have to make sure there aren’t any damage issues. There will be maintenance requirements after a tenant moves out also that may call for renovation. And if you’ve had tenants who have caused damage to your apartments, you may even have to call in a multi-family construction company. However, to try to keep damage in check, below are some ideas what to look for when performing an apartment inspection before a tenant moves out or before a new tenant moves in.
- Check all the carpets in the rooms to make sure they are stain-free. Also look at the paint on the walls and woodwork for damage such as marks, gouges or scratches.
- In the kitchen, inspect the kitchen cabinets for any burn marks, spills or water damage. If there is tile on the floor, ceiling tiles or tiles on the backsplash; ensure that they aren’t broken, chipped or stained.
- Check the bathroom to make sure the shower/tub is cleaned and the toilet is working properly.
- Check to make sure the doors lock and the windows aren’t broken and that they close.
For a general yearly inspection, you may want to check on the following:
- Is the number of tenants which are on the lease the number of tenants which are living there?
- If you don’t allow pets, are there pets? If you do allow pets, is the correct number and kind of pets in the apartments? Also, check for any pet damage.
- If you don’t allow smoking, can you detect if your tenants have been smoking?
For general maintenance on the outside of the apartment building, you may want to run through this list:
- Check the paint on the outside of the building to make sure it isn’t discolored, chipped or cracked. See that the windows don’t have cracks and are clean.
- Check that the roof doesn’t have any shingles missing and that the gutters are free of leaves and also debris free.
Keeping your apartment building in excellent shape will not only attract a better quality of tenant, but save on expenses in the long run.
Thinking about buying an apartment community or other large scale multi-family complex? If you’re curious about the amount of time they may take, try a smaller scale project first.
What about buying a property and converting it into a mini multi-family apartment building? With a house undergoing multi-family construction, you have several choices too. You can live in one side yourself and rent out the other side; thereby the rent you collect will pay the mortgage payment. Or you can rent out both sides and have double the income. Either option will create cash flow and create a more sound financial future.
Another point is that multi-family homes sometimes are within the same price range as a single family home. When a lender knows that you are going to be generating income with the home you’re buying too, your lender considers 75% of the rent as part of your anticipated income. This in turn will let you buy a more expensive multi-family home for the price of a single home with the rent taken into consideration as income.
If you have a property that is undergoing renovation into multi-family apartments, keep in mind that it’s more profitable with more than one unit on the property. If you have multi apartments instead of just one unit too, then if an apartment is empty for a month, it won’t be as much of a financial burden.
And if you buy a unit which has two or three apartments in it, then most likely you’ll be able to finance traditionally instead of having to commercial finance. This means you would only need a standard down payment of 20%. You will also be able to apply for different types of mortgages such as a fixed rate or an adjustable mortgage.
When redoing a property with multi-family construction, the location is also important. Buying property which is near places such as large employers, grocery stores within walking distance and even by universities and colleges is good here. Renting out to students can be profitable also and know that they prefer to rent within a building which is student designated.
There are many advantages to multi-family ownership. Consider the options and what will work best financially for you. As long as you keep your expectations realistic, you can generate a profit while having someone else make your mortgage payments.
A multi-family dwelling can be several buildings in one complex or several housing units in one building. So it can be an apartment building, a condo or even a cohousing project.
And when an owner of a property decides to undergo multifamily construction for tenant use, he could have any of these properties he’s working with:
- A two apartment house: This usually consists of two apartments with one of the apartments on the first floor and the other apartment on the second floor. These apartments usually share the basement and have a front entrance which is shared. There’s also a back entrance which is shared to cover fire regulations. Each unit must have an entrance to the outside or the building wouldn’t be considered an apartment building.
- Three and four apartment buildings: These are similar to a two apartment building, but the apartment layout is different. They also all have separate entrances to the outside, and the lot the building is built on is larger than a regular house lot.
- Duplex or semi-detached: This is a building which consists of two separate houses side by side; under the same roof with separate entrances. The insides of the homes are also separated and have a common wall between the two houses.
- Apartment building: This building has numerous apartments with multiple floors in it connected with staircases or elevators. Apartment buildings can come in all sizes from there being only a few apartments to there being a couple of hundred apartments. Too there are inside hallways and entrances to the apartments with usually some type of community foyer.
- Apartment community: This is often a group of buildings on pieces of land that are adjoining. These buildings are still considered multi-family dwellings and are usually owned by one person or a corporation. Common grounds are shared as well as pools, community clubhouse, and parking spaces in these types of communities.
So a multi-family dwelling has many faces, and when undergoing renovation, a building can be turned into any of the above properties. There is always a need for multi-family dwellings for people who don’t want or can’t afford to purchase their own home too. There just need to be property owners who are willing to rent to people who need a good place to live.
Out-of-date colors are one of the first signals to potential tenants that a property isn’t being kept up to date. Color styles change fairly rapidly and you should ensure that your property’s color palettes are revised every few years to keep up with the latest trends. You may not need to repaint everything, but you may need to change accents like trim or bring interior wall colors up to date.
When it comes to the interior of a room, the color can quickly date the room. You should consider changing the colors of units on a regular basis. If you work with a commercial construction company, they can help paint a large number of units for you quickly. Consider a variety of designs when painting the interior of the units. It’s important to use colors that reflect a modern style. Also, avoid painting every room the exact same color. This gives the units a monotonous looks and can actually make them look smaller. A variety of colors adds visual interest and makes the unit look more modern.
You should consult with your commercial construction company about the colors in your clubhouse. It’s common for property owners to neglect clubhouses. When the clubhouse appears out of style, tenants are likely to avoid it. When they don’t use it, tenants are less likely to view the clubhouse as an advantage to the property. The clubhouse should be painted every few years so that it looks as modern as possible.
You should definitely ask your commercial construction company for recommendations about updating the exterior color of your property. You’ve probably driven past a lot of buildings that look tired and dated simply due to their color. At the same time, you’ve probably noticed other multi-family properties that appear fresher. You can achieve this more modern look simply by updating the color of your paint as long as the exterior of your building is in good shape. You’ll need to paint several parts of the exterior, including the exterior walls, trim, railings, shutters, fencing and any other decorative details. You’ll be surprised at how much updating the colors improves the appearance of your building.
When you find great tenants, you want to hold on to them as long as possible. They’re the people that pay rent on time, are respectful to neighbors and take of property. When you are considering commercial construction projects, you should keep these people in mind. What kind of renovations will help you hold on to established, responsible tenants? You don’t want to lose them because your property is out of date or not up to snuff.
You can start by thinking about what irritates tenants. Ask tenants about these issues. The things that tend to irritate tenants most are things that cost them time and cause major inconvenience. Plumbing issues are high on the list. Overflowing toilets, backed up toilets and unreliable faucets are at the top of the lists of frustrations for tenants.
Appliances cause headaches for tenants. Refrigerators, stoves, washers and dryers wear out over time. There is nothing more frustrating than refrigerators or garbage disposals that constantly break down. Plumbing problems are just as annoying. Heating and cooling problems can also make life difficult.
When it comes to commercial construction projects, you should make these tenant inconveniences your first priorities. Update or replace all the appliances that are out of date. Upgrade the plumbing and HVAC systems so that tenants are as comfortable as possible. Keep in mind that newer heating and cooling systems will save you money because they are cost efficient. It’s a win-win situation.
Another commercial construction project to consider is clubhouse renovation. Clubhouses are often ignored and are used less. An up-to-date clubhouse can be an asset for tenants. Invest in your clubhouse and you’ll receive positive feedback from tenants. What kinds of things can you do to make the area more attractive? Consider the ways tenants might like to use it. They might like to hold baby showers, small parties and community-wide events there. To do so, the area should have new paint, nice tables and chairs, up-to-date flooring and a practical kitchen area. This will make the clubhouse seem like more of a perk to tenants.
There are a wide variety of elements to a commercial construction project. When you’re trying to plan and budget, you may be wondering which elements are the most important. If you have a good commercial construction partner, you should consult with him or her to decide how to approach your property’s renovation. An experienced commercial construction project manager can help you identify the most important projects you should consider. He or she will know the market and what renovations will help your property stand out from others in the market.
Some of the most important commercial construction projects are targeted towards tenant comfort and enjoyment. These mainly concern the interior of the home. Although plumbing isn’t visible, plumbing problems are a major source of tenant dissatisfaction. The same goes for heating and cooling issues. The temperature issues in the building have a major effect on the tenant’s quality of life. They are much less likely to stay in a building where they aren’t comfortable.
It’s important to work with a commercial construction company that has expertise in both internal and external projects. You’ll need to find a project manager that you feel comfortable working with. You’ll also want to ensure that the company is trustworthy and has a good reputation in the industry. You can check with the local Better Business Bureau to ensure that the commercial construction company has not been the target of any complaints.
External building renovations are a very important part of improving your property. The exterior of your building helps to attract new tenants. A good commercial construction company can help you identify the most important issues when it comes to renovating your property. Important elements may include replacing roofing, upgrading siding, repairing or replacing fencing or repairing stairwells. Other exterior commercial construction projects include upgrading your property’s clubhouse, replacing balcony rails and pouring new concrete on sidewalks and other public areas. If your property has swimming pools or hot tubs, it might be time to take a look at them and decide if they need to be professional cleaned, have parts replaced or need to be replaced entirely.