There are several different rental property upgrades that investors can consider to increase the value of their multifamily apartment complex. These upgrades often result in higher selling prices and higher evaluations when projects are appraised for refinancing. Additionally, they can justify higher rents and make for happier tenants.
Here we take a look at how to increase property value with rental property upgrades that can lead to financial success.
Upgrade Common Areas
Upgrading common areas will make a great impression on anyone entering the shared space. It can encourage visitors to consider moving in, and help current tenants feel proud of their home. Here are some easy rental property upgrades to consider for your common area:
- Add indoor lighting throughout your property to brighten up common areas. Place light fixtures on the exterior and along walkways, and in the areas of outside patios or playgrounds.
- Place new and durable furniture in common areas on the lower level of the apartment complex.
- Add artificial or real plants and flowers in traditional areas, such as on coffee tables and in the kitchen.
- Add wall decorations like paintings, mirrors, and bookshelves to add interest to the surroundings.
Improve the Apartment Building Exterior
First impressions count when it comes to property evaluations and enticing new tenants. Here’s how to increase property value with work on the exterior:
- Make sure landscaping is kept up and walkways are in excellent condition, for appeal and safety purposes.
- Add a splash of color with flowering hanging baskets at the front of the building.
- Make your outdoor space ideal for socializing and enjoyment. Consider adding a pavilion with picnic tables or a grill. These ideas help prospective tenants envision happy summer days spent with friends and family.
- Consider replacing the siding to make the building look more contemporary. Add natural wood accents and metal trim for modern appeal.
- Improve the exterior lighting of the project to make it stand out and display the exterior.
- Ensure your signage is easily visible and appealing, to catch the eye of individuals visiting or passing by.
Upgrade Apartment Unit Interiors
Each unit is a deal breaker, or maker, to the individual families renting from you. Some of the best upgrades for rental properties are within the apartment units themselves.
- Replace carpet with laminate flooring. Laminate flooring gives the appearance of real wood flooring at a fraction of the cost. The planks are easy to install and replace and can last for fifteen to twenty years.
- Refacing kitchen cabinets can be an effective way to make them look new without the cost of tearing them out and replacing them.
- Updating major appliances such as stoves, dishwashers, and refrigerators is a great way to enhance the appearance of the kitchen. Be sure to upgrade to less costly energy-efficient models.
- Replacing the bathtubs, flooring, and vanities in bathrooms is also an upgrade that renters will be willing to pay more for.
- With a large number of renters working from home, reliable high-speed internet is essential. If there are any units or common areas where tenants currently can’t connect, improved internet service is one of the best rental property upgrades for you to consider.
These are just a few of the many upgrades that can be implemented to increase the Net Operating Income of your project and increase its value.
Refinance Your Multifamily Apartment
Looking for more guidance on how to increase property value ready to refinance? LSG Lending Advisors is here to help make the process of refinancing easy. We’re experts in HUD and Fannie Mae loans for purchase, construction, and refinancing projects.
Let us help you get the lowest rates and best terms. Schedule a free consultation with LSG Lending Advisors.