Multifamily properties are a big hit when it comes to real estate investment in the US. These properties have everything an investor may dream of, from generating a steady income to being low-risk and promising a good value appreciation. Not surprisingly, it is one of the fastest-growing commercial real estate segments in the US, with total sales reaching an incredible $294.1 billion in 2022.
According to the National Apartment Association, rental growth, demand, and occupancy levels broke all records in 2021. Asking rents increased at 6.3% year over year, demand skyrocketed, and occupancy was a whopping 96.5%, the highest since 2000. The popularity trends for these buildings show no signs of slowing down even today.
At the same time, the multifamily homes segment is more competitive than ever, considering everyone wants to try their luck. Maximizing occupancy and demand boils down to ensuring renters love your property and seal the deal right away. Research shows that certain features and upgrades can set your multifamily property apart.
Here are some insights into adding value to your multifamily property to make it attractive to potential renters:
Get the Aesthetics on Point
Aesthetics aren’t just important to buyers. Anyone looking to rent a property also forms a first impression by looking at the place. No one wants to live in a multifamily property that looks shabby and neglected, so ensure that aesthetics are on point. Luckily, you can implement several measures to upgrade your multifamily units, whether they are an independent property or part of a large property.
Here are a few things that can make a difference:
- Refresh the place with a paint coat inside and outside after every vacancy.
- Ensure a clean and clutter-free space when potential tenants drop in.
- Upgrade lighting to create positive vibes and double up on energy savings.
- Add greens with pots and planters outside the units for brownie points.
- Check for leaks, cracks, and maintenance issues and address them quickly.
These simple aesthetic factors go a long way in enhancing the attractiveness and rent-worthiness of your place.
Add Amenities to the Units
With multifamily properties accounting for 25% of new residential construction in 2020, the rental war is on in the segment. Amenities make a big selling point for multifamily homes.
For many potential tenants, the extras they get with these amenities are decision-makers. While additional amenities entail capital investments into properties, rent increases can pay off the price sooner than later.
Here are a few amenities to get tenants vying for your property:
- In-unit add-ons: Air conditioners, modern appliances, upgraded kitchen, and pet-friendly units
- Community amenities: Parking, washing machines, swimming pool, gym, and Wi-Fi
Create a Sense of Safety
Burglaries of residential properties are more common than ever. Statistics show that more than half of all burglary offenses happen at homes. Multifamily houses are also at risk, making safety a plus point for potential tenants. Robust security for your property is more than having durable doors and windows and installing high-quality lock systems.
Security features such as alarm systems, sensor lights, and surveillance cameras can take home safety a notch higher. Access control installation is also an excellent investment because it can prevent an unauthorized person from entering the property. The feeling of safety makes existing residents comfortable and attracts new renters.
According to The Flying Locksmiths, commercial access control mitigates the risk for all types of properties, from offices to retail stores, factories, and rental properties. It is a small price for safety, and owners should never get complacent about it.
Embrace Smart Technology
A survey suggests that 82 percent of American renters expect their property to have at least one smart device or system. Moreover, they are willing to pay more rent for properties with smart technology add-ons. You can make the most of the trend to maximize the demand, yield, and long-term value of your multifamily home.
Smart lighting, sensor-controlled surveillance cameras, smart thermostats, and keyless door locks are a few valuable smart upgrades to set your property apart. These installations may be initially expensive for property owners, but they offer a high ROI and ensure long-term occupancy for your multifamily home.
The Bottom Line
The multifamily rental market is hot, but a high supply may offset the benefit of high demand. Since the market is competitive, investors need to ensure that their property is attractive to renters. Small investments can take you a long way in this context. Even if you need to spend a bit, you shouldn’t hesitate because the returns are likely far bigger and better than you imagine.
