If you want to maximize the profit from your multifamily real estate investments, then consider these interior updates.
If you own or invest or plan to invest in multi-family rental property in Texas, you want to increase the value of your property. After all, increased value equals increased rental income, which means larger profits and more asset value.
Renovations can increase value, but they can be expensive. According to Home Advisor, a kitchen renovation alone can range from $5,000 to $30,000. Plus, it can take significant time to recoup your investment.
Don’t worry. There are inexpensive interior updates that offer a significant return on your investment.
Keep reading for six ways to increase the value of your property without breaking the bank.
1. Smart Technology
Today, smart home technology is hot. You can make updates to improve your residents’ lives without a complete renovation.
Property owners can add smart thermostats, Bluetooth door locks and smart lighting. Some property owners install built-in Bluetooth speaker systems. Built-in USB plugs are especially hot.
Smart tech interior upgrades can increase renewals in older properties by competing with newer properties.
Yet, increasing the use of smart tech doesn’t mean residents don’t want traditional renovations. Improvements in flooring, fixtures, and paint still have a big influence on rental decisions.
Let’s look at some more traditional interior updates apartment property owners can make.
2. Refresh the Kitchen
Of course, you can always gut the kitchens and start over, but that can be expensive. The truth is, you can improve any rental kitchen without a major renovation.
Consider less expensive upgrades to enhance the look, feel, and functionality. These easy interior updates will provide a good return on investment.
Update the Cabinets
Instead of replacing the cabinet boxes, update the doors with new contemporary or shaker-style fronts and paint the boxes. The same goes for drawers. Better drawer hardware is an instant visual upgrade. This fix makes the kitchen look modern for a lot less than total replacement. Finish off the updated cabinets with new cabinet pulls and door knobs. And viola! It looks like a brand new kitchen!
Resurface Counter Tops
Resurfacing is still the cheapest way to go to add new life to counter tops. Modern methods make for impressive results. Be sure to include a cutting board and hot pads in your move-in package to extend the life of this option. Otherwise, as the price of granite continues to come down, consider granite will last longer than a single turn with resurfacing. Always keep your exit strategies and timelines in mind.
Add a Tile Backsplash
Accent tile backslashes add a decorative flair to kitchens. Add subway tiles and create a decorative focal point. A tile backsplash improves both the look and functionality of the kitchen. It’s durable and protects your investment.
Replace the Kitchen Faucet
Is there anything better than a new kitchen faucet? Renters always appreciate the upgrade. A new faucet modernizes the kitchen and eliminates worries about leaks.
Install one with a goose neck and spray nozzle and everyone wins
Under Cabinet Lighting
If the only light in the kitchen is in the center of the ceiling, consider brightening the room. Install under cabinet lighting to illuminate work areas. It also provides ambiance to the room.
There are three types of wiring: hard-wire, simple plug-in and battery operated. All you need for the plug-in is an electrical socket. Hard-wired requires a bit more effort and professional installation.
Next, let’s find ways to improve the bathroom.
If the bathroom is in decent shape, try a few cosmetic updates to improve looks and functionality. Paint always helps. You can also swap out a couple of hardware fixtures for fast visual and functional improvement.
Upgrade the shower with a replacement shower head. You can turn any shower into a spa with a rainfall showerhead. A specialty shower head creates a pleasant experience, plus saves energy and reduces water expense.
It’s so easy and obvious but often overlooked, and everyone appreciates a fresh toilet seat. While you’re at it be sure the guts are working right to maximize water savings.
Framing the mirror is one of the quickest ways to add an instant wow factor. Buy a kit or make your own by combining interesting moldings with screen molding on the back to get the spacing right. Be sure to finish the reverse side that will be reflected in the mirror. While you are at it be sure to paint the inside of those old medicine cabinets.
If the bathroom needs more than simple cosmetics, it’s worth it to replace the sink, vanity, and toilet. It could be the difference between a rental and a vacancy. No one wants to rent an apartment with an inferior bathroom.
4. Install a Washer and Dryer
This may not always be possible, but if you can, at least add washer and dryer connections. This can increase rental revenue by 15% according to the National Apartment Association. Keep in mind that the more you upgrade a unit, the more a washer and dryer will be expected.
If the apartment already has hookups, use installation as an incentive. Explain to desirable residents that you’ll add a washer and dryer combo if they renew their lease. Stackable units are affordable.
This adds value for them and secures a reliable resident for. You save money by avoiding a vacancy.
5. Energy Efficient Appliances
In the rental world where amenities mean everything, consumers want energy-efficient appliances. If you don’t offer them, another property will.
A study for Multifamily Executive magazine showed people shopping for an apartment consider green features must-have amenities. Millennial renters say they’ll pay higher rents in exchange for sustainability and energy-efficiency.
At first glance, interior updates that include energy efficient appliances cost a lot. But, an NAA amenities study shows the upgrades yield 16% more in rental income.
It’s wise to consider replacing appliances with more efficient, environmentally conscious models.
6. Incorporate Universal Design Features
Universal design is also known as timeless design. Universal design features are common in most households today.
If you upgrade an apartment make it practical and safe for all tenants by incorporating universal design. Below are a few ways to use this design approach in interior updates.
Swap Traditional Doorknobs for Lever-style Handles
Doorknobs require dexterity and torque to open. People with arthritis, as well as small children, can struggle with doorknobs. A lever handle lets you press and go.
Plus, levers are sleek and good-looking contributing more value of the property.
Replace Toggle Switches with Rocker-style Switches
A rocker switch has a wide plate you can operate with a single finger, or your elbow if your hands are full. A rocker switch looks modern and efficient. Rocker switches are easier to keep clean, too. A cheap fix is to add a switch cover that goes over the existing switch to add size and style.
Add Motion Sensor Light Controls
Motion sensor lights are easy to install. Just stick them into an existing outlet, plug your lamps into them.
The sensor detects motion and turns on the light. These are great for late night trips to the kitchen or bathroom. The lights turn off after a set amount of time. Energy-efficient and a functional upgrade that residents love.
Want More ROI from Your Apartment Properties?
Give us a call. At the Better World Family of Companies, we offer complete apartment lifecycle solutions. Our experts find, analyze, manage and improve apartment processes while uncovering hidden value. Where is your value hiding?
Contact us today to buy, sell, rehab or finance an apartment property in Texas. We provide everything apartment owners, investors and residents need to increase their profitability. Better yet, stop by and visit. We love to talk apartments.