Ready to get the most out of your real estate investments? The total value of multi-family properties in the US exceeded $111 billion in 2021 and is expected to continue rising until 2025. If you're renting out multi-family units, you need to know about property upgrades that will help you to increase property value and prospective tenant interest. Keep reading as we discuss the five essential multi-family unit upgrades that will increase your property value.
Start Within The Units
Just like when you're staging a home to sell, you need to update your unit to make a great first impression. Focusing on improving how your units look will increase interest and demand. Some key aspects to focus on when enhancing your units include:
- Kitchen upgrades - the kitchen is at the heart of any home, and a modern kitchen can attract prospective buyers and tenants. Try upgrading kitchen countertops and cabinetry to provide a modern and fresh look.
- Bathroom upgrades - moldy tiling, rusted taps, and cracks can seriously lower the appeal of your property. Fitting your bathroom with new tiling and fittings will go a long way in refreshing the space.
- Appliances - look at the home's heating, lighting, and cooking fixtures to see how convenient they are. If they are dated, difficult to use, or unsightly, it would be best to consider switching and updating them.
By increasing the visual appeal and convenience of the properties themselves, you can make them more appealing to buyers and tenants, increasing value and tenant interest.
Upgrade Common Areas
The common areas and amenities you provide in your multi-family property can drastically improve value. Weigh up the following amenities to determine which are viable in your property:
- Gym facilities - If tenants and buyers can save money on their gym membership by moving into your property, this will be highly appealing.
- Laundry facilities - your tenants can save space and prevent clutter in their units by accessing laundry facilities.
- Pool and spa facilities - To increase your units' price, you can offer pool and spa facilities to create a luxury building.
- Terrace and patio facilities - to create a sense of community in your building and maximize the tenant experience, you can implement terrace and patio facilities on the property, along with a cafe or bar.
Investing in up-to-date furniture and equipment for these areas will increase the luxury of your property and make tenants feel comfortable paying more in rent.
Invest In Modern Security
Modern and sophisticated security is essential if you're looking to attract high-value tenants and buyers. Standard key and lock systems are a great start, but the latest smart technology has led to advanced security solutions that increase comfort and convenience.
Consider implementing a touchless card reader door lock system that ensures your security is as secure as it is high-end. Modern solutions use mobile credentials as digital access cards, allowing your tenants to download their keycards to their devices.
When they need to enter the building, they can simply wave their hand over the reader, triggering remote communication with their device to unlock the door. The tenant does not need to touch germ-covered buttons and pin pads to enter, and they will have more convenience for daily building use.
When you need to move tenants in and out, you can manage their security keycards from anywhere using your mobile device or a cloud-based control center. You can adjust their permissions based on their lease termination or move-in date, ensuring tighter security.
Due to the convenience, it offers for daily building entry, touchless access control is quickly becoming a sought-after feature for tenants searching for a secure property.
Boost Curb Appeal
You should update the perimeter of your property, both in terms of security and aesthetic value, to keep your existing tenants happy and encourage interest in the property. Planting foliage, installing new security perimeter gates, and updating the property's fencing will boost curb appeal.
Make Sustainable Switches
Renters and buyers are paying close attention to energy efficient upgrades when searching for a new home. If you want to increase the value of your property, you should consider making the following sustainable switches:
- Smart HVAC systems - you can opt for an HVAC system that your tenants can manage from anywhere using their mobile devices. They can switch off their air conditioning when they leave the house and set timers for the device to ensure they are not wasting energy.
- Solar power - installing solar panels will help decrease your tenants' monthly overheads, and you can detract from your carbon footprint. Since the recent energy crisis, many people are switching to solar power to reduce their reliance on energy from the grid.
- Composting - to ensure your recycling schemes work, you can implement composting methods, allowing tenants to dispose of their food waste sustainably.
Boost the Value of Your Multi-Family Investment
It's in your best interest to provide excellent units, amenities, security, and energy solutions. Doing so will increase the value of your properties and drive interest in your multi-family units. So, consider which of the improvements listed above would add most to the value of your units, and implement them to increase your ROI.