Looking to gain more value from your rental property? Consider making upgrades to your multifamily units. Finding a trustworthy commercial exterior contractor can help you choose the best upgrades to invest in, so you get the most out of your rentals.
Here are some tips to help you gain a strong return from your multifamily exterior remodel, as well as ways to enhance your rental property interiors.
Keep Your Budget in Mind
No matter what your existing budget may be, making timely upgrades will help you attract and retain good tenants, and preserve your real estate’s condition. Starting with small but noticeable changes can help you stay within your means, as well as justify raising rents.
To boost ROI and stay in budget, concentrate on one property improvement at a time. Keep in mind that short, focused projects are more convenient for tenants and easier for you to complete.
Consider These 7 Remodeling Options that Boost ROI
These tried and true upgrades to your multifamily rental property are surefire ways to add value to your property and achieve as much as a 10–30% bump in rent.
1. Provide Additional Amenities
This concept is simple, but so effective. When your rental units’ kitchens have new, updated appliances, you can ask for more rent. Adding an energy-efficient refrigerator not only saves money on electricity, but also impresses potential residents who would be willing to pay a higher rent for a gorgeous new appliance that also is eco-friendly.
Tenants also appreciate other amenities that make their lives easier. New washers and dryers or added laundry hookups automatically bring value as well as convenience for renters.
2. Refresh the Bathrooms
Experienced multifamily property investors know that cost-effective upgrades to bathrooms are instrumental in minimizing tenant vacancies. Since renters spend a lot of time in bathrooms, they are the rooms that can make or break the amount of rent your units can fetch, which, of course, affects the all-important ROI.
For starters, install attractive modern hardware, such as shower heads, toilet seats, sink faucets, cabinet knobs, towel racks, shower curtain rods, and even the toilet paper roll holder. If needed, refresh tiling too. It’ll go a long way toward pleasing tenants.
3. Spruce Up Exteriors
Achieving gorgeous curb appeal is essential to enjoying higher ROI from your commercial property. Your multifamily rental property’s exterior either attracts prospective renters, or it turns them away. Repainting, making masonry repair, and redoing walkways and driveways are all projects to consider. Simply put, people will pay more for a home that looks cared for.
An exterior renovation that yields one of the greatest ROIs is improving the siding. The existing siding might just need to be cleaned due to stains and dirt, but if the exterior is faded, discolored, rotted, or otherwise damaged, it’s time for new siding. Replacement siding is an attractive way to convince potential tenants that you care about your property. And a commercial exterior contractor can help you choose the most appropriate siding styles and colors.
4. Put in Better Flooring
Flooring takes a beating from constant use, and it can make your property look aged and worn. So, it makes sense that renovating units with brand-new floor surfaces not only raises the property value but also adds beauty and style to a property.
Remember, potential renters are better able to see themselves living in your property when they see beautiful, trendy-looking floors. Renters are typically willing to pay up to $75 more in rent for hardwood floors than carpeted spaces. And adding luxurious, modern, easy-to-maintain flooring is a simple way to convince a renter to pay that additional amount in rent.
5. Install Modern Lighting
Updating old, outdated light fixtures with ones that are energy-efficient and stylish, as well as functional, is an easy option to increase the value of your property. Wall sconces, overhead lighting, and other light fixtures can be a breeze to update, and they can make a huge difference in how attractive a rental unit appears.
In addition to creating beauty, modern fixtures often make great use of the latest energy-efficient LED bulbs, which normally utilize 75% less energy and last longer than average bulbs. They pay for themselves in the long run, which you and your renters will enjoy.
6. Upgrade Old Plumbing
A major plumbing upgrade can be a sizable investment, but it is smart to do so when old plumbing systems run the risk of leaking and causing water damage. Have plumbing systems inspected regularly and repaired as needed.
If the main plumbing structure is intact, you can still plan to change out worn, outdated plumbing features like leaky faucets and aging showerheads. Investing in state-of-the-art plumbing options like energy-efficient faucets, low-flow toilets, and safe cover-control garbage disposals will lower water usage and give the rental unit a fresh look.
7. Install Energy-Efficient Windows
New windows mean energy efficiency, enhanced property value, and curb appeal. They also have advanced locking mechanisms to keep tenants safer. And when you choose modern vinyl or fiberglass replacement windows, you’ll enjoy low maintenance too—making your property easy to care for.
Replacing old windows could be the easiest way to stay within your remodeling budget. Heat transfer through outdated windows can account for up to 25% of an electric bill. Updating your home to double-paned, low-E glass windows saves valuable energy dollars. Last but not least, curb appeal in the form of new windows can give your property a whole new look with character and style.
Transform Your Multifamily Property with the Right Commercial Exterior Contractor
We understand you want your multifamily property exterior to look beautiful and attract great tenants. So, if you’re noticing areas around your rental property that are in need of care—whether it is faded siding, outdated windows, roofing concerns or more—we are here to help. See how our multifamily exterior remodels have transformed commercial rentals all around the Chicago area.
