Ways to increase the value of your apartment complex, Online property tips and advice

5 Ways to Increase the Value of Your Apartment Complex

22 July 2024

Are you finding it hard to attract tenants to your newly acquired apartment complex? In that case, you probably need to boost the quality of the building.

The thing is, apartment complexes are getting better at offering great amenities as construction rises to add more profitable units. Statista reports that 100 million people lived in rental homes two years ago. This number is only going to rise.

Needless to say, real estate is a competitive market. For instance, apartment demand rose, and the city of Huntsville, with thousands of rental households, witnessed 15.1% growth in 2023.

Today, just creating attractive listings and performing regular maintenance will not do the trick. You will have to increase the apartment complex’s value. For that, you will need better lighting, internal renovations and more.

In this blog post, we will discuss five unique ways and tips to help enhance your apartment building’s value and aesthetics.

#1. Get the Right Insurance Policy

Many building owners only go for landlord insurance coverage for their property. According to Investopedia, the core coverages of this policy will include rental income loss due to the tenant’s inability to pay, property damage and liability protection.

But what about the building’s internal structure, like the walls, cabinets, plumbing or appliances? That is where condo or HO6 insurance comes in. This policy was specially created for condominium and co-op owners to protect the interiors of the building and personal belongings. It is often referred to as a walls-in coverage that acts as an add-on to the condo’s master policy.

This policy offers complete personal liability coverage when coupled with landlord insurance. Basically, it covers the common spaces (lobby, pool, clubhouse and parking). If these areas are damaged by fire, theft, burst pipes or vandalism, the condo insurance will pay for it.

According to Hippo, the average cost for a condo insurance policy in 2022 was USD 531. The exact premium will depend on the building’s location, ZIP code, age, condition, unit size and more. Getting these insurance policies builds trust between you and the tenants, proving that you genuinely care for them.

#2. Offer Technological Amenities

Did you know you can use technological upgrades and amenities to add value to your apartments and attract new tenants? The global smart apartment industry will reach USD 3.61 billion by the end of this year. Between 2023 and 2028, this market will witness a 13.4% CAGR, reaching USD 5.97 billion.

This statistic proves the immense popularity of technical upgrades among residents. As a landlord, ButterflyMX states you must offer community and in-unit amenities. These can be for your tenant’s safety, wellness, convenience and luxury.

You can focus on the following upgrades:

High-speed internet access
Smart home features
Online rent payment

Pet amenities

With these smart home upgrades, you can modernize your apartment building, allowing for higher rental rates. Technology can also differentiate your property in this competitive market, attracting tech-savvy renters who want connectivity and convenience.

#3. Improve Parking Facilities

Did you know smart parking facilities are a basic thing renters look for when choosing an apartment complex? In 2023 alone, America added 514,000 new rental households. To stand out in this competition, you must offer something that tenants cannot ignore.

Imagine this: Your parking lot is cracked and full of potholes. If that is the case, the poor state and appearance will turn potential renters away. You must also ensure that there are adequate parking spaces around the property to avoid inconvenience.

To improve your parking facilities, you can follow these tips:

Provided designated electric vehicle spots with charging stations.

Offer parking spaces for both visitors and residents.
Consider parking garages and covered parking options.
Implement digital permits and reserved parking to prevent congestion.

You can also streamline parking management with proper lighting and security technologies. These will contribute to tenant safety and satisfaction, attracting them to rent apartments on your property.

#4. Make Internal Renovations

Everyone in the real estate industry knows that unique architecture can improve home value. Similarly, internal renovations can improve your apartment’s appeal. These can be improvements to the lobby, common area and each unit.

Did you know that people are willing to pay more if they get nicer spaces? Even simple renovations can improve the apartment complex’s value. Examples include the following:

Fresh paint will brighten a room.
Modern kitchen appliances and countertops to enhance functionality.
Better flooring can also enhance aesthetics.

Bathroom renovations with energy-efficient fixtures for better appeal.
Upgrading HVAC systems.

With these upgrades, your tenants will be satisfied, and the higher rental rates will be justified. In turn, it will increase the property value, which will help attract high-paying tenants from across the country.

#5. Improve Lighting

Adequate lighting can enhance the look and feel of any living space. Frontiers research suggests that the lighting environment influences a person’s physical and psychological aspects to a great extent.

If the building has less natural light, you must find ways to illuminate the dark corridors. For instance, you can add extra fixtures throughout the entryway, stairwells and hallways. When it comes to outdoor lighting, building owners must ensure adequate visibility along doorways, sidewalks and parking lots.

Lighting your apartment complex (both indoors and outdoors) enhances safety and aesthetics. For instance, you are helping your tenants easily navigate the building. Recent reports highlight the transformation of a ‘once’ dark 646-square-foot apartment into a light-filled and versatile home.

Additionally, lighting improvements can add energy efficiency to your buildings. For example, installing LED light bulbs can mean 90% less energy consumption. It can also last 25x longer than incandescent fixtures.

To end with, strategic investments in energy efficiency, professional management and amenities can help enhance your apartment building’s value. These will attract high-paying tenants and ensure long-term profitability for landlords.

For instance, you must get insurance policies, improve parking facilities, offer technological upgrades, enhance lighting and make renovations. With these, you can easily create a desirable place to live for your renters and evolve in the competitive real estate market.

That way, you can improve the property’s functionality and appeal, maximizing rental income and tenant retention.

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