How to Increase the Value of Your Apartment Building (Part 1)

apartment building

Making improvements to your apartment building or its operations will add more value to the property. In turn, this can help increase revenue or decrease your expenses. Understanding the importance of adding value to your apartment building or community is crucial to your success. 

It is your job to identify how to add value to your building to come up with a business plan that can maximize your projected returns for your investors. In the case that you’re a passive investor, you must be able to analyze a distressed or value-add syndicator’s business to determine if the opportunities are conducive with the property type, market, demographic, and many more. 

In this post, we will share some items that can add value to your apartment building: 

Appliances

Consider upgrading outdated appliances in the units to stainless steel and then charge a rental premium for them. 

In the case that you already have upgraded appliances in the unit, you can implement a rental premium for it. Also, you can offer appliance rentals that apply for common items, such as carpet cleaners and vacuums. These appliance rentals can increase the value of your property because tenants will care more for their unit; at the same time, it will help reduce the expenses associated with turnovers. 

Washers and Dryers

Installing washer and dryer units into all or selected units and charging a monthly premium for it are a great way to add value to your property. You can also create a laundry room and set up coin-operated washers and dryers there. 

Light Fixtures

Installing new light fixtures is a quick and affordable way to make your property look more aesthetically pleasing. Besides that, it can also increase the safety and security of the building or community. Your tenants will definitely appreciate the added safety, security, and aesthetic features of light fixtures. 

Hardware

New cabinets and vanities in the units will bring in higher rental rates. However, they can also be costly on your end. What you can do here is that if you already have installed cabinets and vanities, you can simply update their look by installing new hardware, such as replacing the handles, sinks, toilets, showerheads, and many more. 

Parking

You don’t need to implement a more advanced parking upgrade, instead, consider charging a yearly or monthly fee for premium-location parking spots. Parking spots are essential in apartment buildings with a high number of tenants who have their own cars. 

Pets

If you allow pets in your building, you can charge a one-time deposit every month for residents with pets. By doing so, it can increase the value of your apartment buildings and save you a headache should pets cause trouble in the property. You can use the deposit to pay for the damages. 

On to the Next…

In this post, we discussed some simple improvements you can make to your apartment building or community. We have another post that will discuss some of the most complex upgrades that can add value to your property. So, read more and increase your revenue!

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