4 Ways To Increase The Value Of An Apartment Building

Apartment and flat living has only grown in popularity over recent years. Apartment buildings have become increasingly more modern and luxurious, which has allowed increased numbers of renters to be able to afford more stylish apartments for their budgets. 

With this, landlords have also had to find more ways in which they can improve the quality and appearance of their buildings, but with more restricted budgets. Landlords and building owners need to know how they can increase their apartment’s value in order to keep up with competitors. Let’s take a look at a few ways you can increase the value of an apartment building. 

Internal Renovations

Renovating the internal spaces of your apartment building is a great way to improve the curb appeal aspect of your building. Whether you choose to renovate communal spaces, such as gyms, shared kitchen areas, and hallways, the lobby, or the apartments themselves, internal renovations can significantly improve the value of apartments in your building. 

A fresh coat of paint can significantly brighten the entrance of your building, or you may even choose to undergo a full commercial fit-out if your building is tired and dated but has lots of potentials. Tenants will be more willing to pay for well-kept and aesthetically pleasing apartments, meaning you may also be able to increase your rental prices. 

As a landlord, you can choose whether you allow your tenants to decorate their apartments, or if you’d rather the decor be kept relatively plain and simple. You may find that by enabling tenants to decorate, even if within moderation, encourages them to take out a longer lease. If you would rather the decor be kept minimalistic and under your control, then be sure to regularly review for signs of wear and tear and listen to your tenants if they report decor issues. This means that should you be looking to increase your asking rent price, there is little that tenants can be put off by. 

Improve The Parking Availability

Parking is one of the first things that potential tenants will notice when they are considering an apartment. If the current parking situation is unkept and not regularly cared for, this can put tenants off from choosing your apartment building. If you have parking spaces for tenants, then be sure that there are adequate spaces for all tenants close by. Insufficient parking availability can mean that tenants will be left to park elsewhere, which may cause them to question what extra fees they are paying for. 

Your apartment building will be much more valuable with improved parking options, whether you decide to invest in parking space to offer to tenants, or simply renovate the current parking options. Appearance is key, as the nicer looking the parking, the safer tenants will feel leaving their cars there. 

Upgrade Amenities

You can change and increase the value of your apartment building by upgrading the amenities offered to your tenants. Offering attractive amenities to your tenants can make your apartment building more competitive, therefore increasing the number of tenants your building houses. As well as this, better amenities can also increase the total rent you can charge. Well planned and executed apartment amenities can cause your building to fall into a better property classification, again increasing your rental potential. 

These amenities can include things such as swimming pools, communal gardens, improved in-apartment furnishings, and decor but really it should be whatever you think tenants in your property would appreciate. If your apartment building is in the middle of a city center and houses a younger, more professional, demographic, then tenants will be unlikely to appreciate a communal garden with a play area, for example, in the same way that an out-of-town building that houses a number of families would be unlikely to appreciate a gym. 

Optimise The Square Footage

When it comes to increasing the value of your apartment building, it’s important to understand the tenants in which your building will attract. This includes whether the rentability of specific flats or layouts in your building will work. Suburban apartment buildings typically have a higher demand for 2 or more-bedroom apartments to accommodate families, whereas inner city buildings will likely be 1 to 2 bedrooms maximum, perhaps with the addition of a balcony. Consider whether the offerings of your apartment building are utilizing the market which it attracts, or if it may be worth optimizing the apartments within your building to meet demand. 

Conclusion

When you’re looking to increase the value of your apartment building, it’s important to be conscious of the returns that a renovation or major changes could bring. Weigh up whether this additional spend is worth the potential returns and, if it does, be realistic with your goals. Renovations and other similar efforts will see a building value increase, but poorly planned or executed changes will only present issues.