Are you planning on updating your multifamily rental property? If so, you come to the right place!
Like most multifamily investors, you may be wondering which renovations will actually increase the value of your multifamily rental property before you start spending money? This is a smart question to ask because it’s very easy as an investor to get caught up in making expensive or unnecessary renovations switch will not add the value to your property that you hoped.
In this article, we will break down some of the most important multifamily renovations just so that you have a clear idea of what you should be spending money on before you start renovating.
Make Exterior Renovations First For Improving Curb Appeal
As with any other rental property that you may own, one of the first things that you should be spending money on when renovating your multifamily property is curb appeal.
Curb appeal improvements can encompass anything from adding new landscaping, siding to hiring someone to power wash the exterior of your rental property including the driveway, walkways, and any other part of the property that your tenants me see before entering the building.
Even though curb appeal improvements are not glamorous by any means, they are certainly practical because improving the curb appeal of your multi-family rental property will also help you to attract higher-quality tenants who care about the quality of the property that they live in.
Add New Flooring In Each Unit
Depending upon the number of units that your multifamily property may have, one of the first things that you should consider spending money on when renovating your property is adding new flooring in each unit.
Besides being a practical renovation, flooring can also help to increase the “wow factor” when a prospective tenant first enters your rental property. It will make each unit look cleaner and more well-maintained compared to other properties in the same area.
What type of flooring should you consider? Even though most owners these days like to utilize laminate vinyl planks throughout their rental properties to save money, you should consider a mixed approach by adding carpeting in the bedrooms of your rental properties then add vinyl flooring to the hallways, kitchens and other high traffic areas of your rentals.
Purchase New Appliances
Once you add new flooring to each unit of your multi-family rental property, the next renovation that you should consider is adding new appliances.
Some of the new appliances that you should consider adding to each unit in your multi-family rental property should include new ovens, refrigerators, and dishwashers. Updating new appliances is an important investment to make because, it will also show potential tenants that your property is safe for them to live in, especially if they have children.
Yes, updating the appliances is important but you shouldn’t stop there with making updates to each unit of your multi-family rental property. You should also consider updating the light fixtures as well.
Light fixtures are often one of the very last updates that most landlords make, but they important because an older light fixture can make a property look “dated” and cause a tenant to look elsewhere for a rental.
The good news is that these days light fixtures are very affordable and cost a lot less than they did in the past so if your rental has outdated fixtures, you shouldn’t hesitate to replace them.
Renovate The Kitchens And Bathrooms
After updating the curb appeal, flooring, and appliances in each unit of your multi-family rental property, the next areas that you should consider updating in each unit include the kitchens and bathrooms.
Updating the kitchens and bathrooms in each unit of your multifamily property is important because these are the areas where your tenants will obviously spend the most time. It makes sense for you to spend a percentage of your renovation budget updating these areas just so that you could show your potential tenants that your goal is to offer them the most value possible.
If you’re currently renovating your multifamily property but you’re also on a budget, the good news is that you can easily update the kitchens and bathrooms in your property by simply doing the following:
- Refinish or repaint cabinetry. This will save you thousands and the hassle of having new cabinetry installed!
- Add a new cabinet door or drawer hardware.
- Repaint the kitchen and bathroom in each unit
- Add space savers and organizers to each cabinet
- Update the light fixtures
- Add vinyl plank flooring
As of 2020, the average cost of a kitchen or bathroom remodel in the United States is around $20,000 but, if you’re on a budget, you can easily remodel the kitchen and bathroom in your multifamily property for under $5,000 each while utilizing some or all of the tips that we mentioned above.
The key to success with kitchen and bathroom renovations in your multifamily property is to stick with practical renovations that are also durable and will last for years to come. This means that instead of adding a farmhouse sink or designer back splash in the kitchen of each multi-family property that you own, you purchase the same durable kitchen sink and look for each kitchen in your multifamily properties.
Choosing the durable fixtures, flooring, and features will help those improvements to last for years to come while helping you to keep your renovation costs down as well.
Add More Amenities
Once you’ve updated the curb appeal, flooring, paint, kitchens and bathrooms of each unit in your multi-family rental property, another practical thing that you can do to add even more value to your property is to start adding more amenities.
Some of the amenities that you should consider adding to your property include washer and dryer hookups inside each unit or if you have space to build an on-site laundry facility, you should consider adding washer and dryers to your multifamily property.
Adding washers and dryers to your multi-family property is a practical amenity because your tenants are obviously going to have to do their laundry somewhere. If they are spending money doing laundry at an offsite laundry facility, why not add a laundry facility to your property so that they could do laundry on-site?
What To Do Before Getting Started With Renovations
We’ve offered you some great renovation ideas for your multi-family rental property but, the most important thing that you need to do before getting started is to set a renovation goal for your property.
Your renovation goals should be determined by necessity so for example, let’s say that the roof on your multi-family rental property requires immediate replacement or repair, obviously, you’re going to want to repair the roof first before spending the time and money improving that curb appeal to your rental property.
Once you set goals and start accomplishing then, it’s also important to realize that even though you’re working hard on tackling planned renovations, there may be some unplanned repairs that pop up along the way.
Never hesitate to take care of anything that needs attention right away like leaky faucets, outdated appliances, or broken door locks because your commitment to showing your tenants that you want to make repairs and renovations is going to help them to see that you value their business instead of you seeing them as source of income that you receive from them on a monthly basis.
Besides setting renovation goals, you should also create a solid project plan for your Innovation that includes that time frame, materials, scope, budget and other key elements of your project.
If one or all of the units in your multifamily property are currently occupied, you’re also going to have to schedule the renovations so that they disrupt your tenant’s lives as little as possible.
Last of all, but most important, setting goals and having a plan for your renovation are important but you must also determine the total budget for renovations before moving forward with the project.
Knowing the budget and sticking with it will help you to avoid overspending money on renovations and help to ensure that you receive the highest return-on-investment from your property possible.
Keeping you’re a multi-family property updated is an important part of owning the property itself because, your goal should always be to show your tenants that you want to offer them that cleanest, safest, and most updated rental property possible.
By striving to offer your tenant’s tons of value, you can have confidence that when it comes time for them to renew their leases, they will be inclined to renew because they’ll see you as a caring landlord who wants to offer them value and they will want to stay instead of looking for rentals elsewhere.