Renovations and upgrading of multifamily housing can expect to generate a significant rent increase.
Recently a property upgraded their garden apartments with six inch baseboards, two tone paint, maple kitchen cabinets with brushed steel finishes. They were also able to raise the rent by a $110.00 a month, which ended up giving them a return on investment of over 10 percent. The plumbing, lighting, and electrical are now being upgraded.
Which improvements and renovations will lead to the biggest bang for your investment buck?
There are a few factors that play into the answer to the question. For instance, where the building is located, the age, and surrounding competition.
Typically, replacing carpeting and installing a wood like flooring or tile is a very productive improvement, then come kitchen upgrades and stackable washers and dryers. New materials are more durable and last longer. Don’t discount minor changes, such as lighting, they can make a huge difference.
Exterior
Upgrading the exterior of a building can really boost curb appeal. Common areas, signage, painting, new siding, landscaping, all affect the crucial first impression.
Amenities
Just by adding a washer and dryers to the unit can significantly boost its value. The convenience of not having to go out for laundry is definitely worth the extra rent.
Strongest Markets in 2022
Those markets in close proximity to growing core cities and gateway markets, such as Atlanta, Orlando, Tampa, Jacksonville, and Columbia South Carolina, may be the strongest. The demand for multi family housing will be strong, but the competition from new construction will be low. Making it a great opportunity for investors.
Stand Out in 2022
The key to a successful development is to stand out from the competitors. New construction and upgrades of existing properties will need to focus on high tech and ‘green’ construction. A key factor for continued growth will be to understand the demographics and achieving their needs.
Contact SWET Construction Group for a successful project with high returns on investment!
Ensuring your multifamily housing stays ahead of the game, means you need the right construction and design team. SWET Construction Group is built on a foundation of high standards and experience. Our technical knowledge in construction, quality design, planning and operations, is unmatched.s.
Contact SWET Construction Group for more information.