Multifamily Investing – Updating an older property for maximum value
Multifamily investing has never been hotter. Multifamily apartments that are in great condition are fetching some of the highest prices seen in years. On the other hand, older dated properties are selling at much lower rates. If you have an older apartment complex that has become a little dated, now is the time to consider making some strategic upgrades. It’s time to focus on upgrades that will deliver a big bang for your buck in both rental rates and sales price (when you decide to sell).
However, not all upgrades are equal. You want to consider upgrades that will give you the highest return and maximize your property’s value. Before you get started, remember to do your research. Make sure the enhancements you do are appropriate for your area, tenant base, and property. You need to know what will make the biggest impact in your area.
We’ve put together a list of 5 upgrades that should be considered for your multifamily apartments. These enhancements have been proven to refresh an older complex and deliver a high return for your investment dollar.
5 upgrades that deliver a big bang for your buck:
- Paint – There is no other single item that can dramatically change the look and feel of your property for less money than new paint. Adding color to the interior or exterior of the complex can make your apartments feel fresh, new, and cared for. It can bring new life to any property, and your tenants and prospective tenants will notice it. Pick colors that fit your area and that are soothing to your tenants.
- Appliances – Residents love new appliances. If you have old and dated appliances, consider replacing them. It’s not uncommon for apartments with new or upgraded appliances such as stainless steel or black to fetch a premium rental rate.
- Fixtures – Some of the most subtle and inexpensive items that you can upgrade are the fixtures: lights, pulls and knobs, doorknobs, and towel bars. These items can be very inexpensive, but can deliver a lot of impact. They can make it easier to lease your apartments and get more money from them. Nothing says dated like brass. Consider changing from dated brass to stainless steel, satin nickel, or oil-rubbed bronze.