Ready to turn your apartment investments into profits? Here are essential tips for making money in apartment real estate investing.
Apartment real estate investing is booming. Among investors who plan to invest more next year:
- 54% are between the 35-55 years of age
- 36% earn over $100,00 a year
- 55% are college graduates
- It’s no surprise that so many people are looking into apartment real estate to invest. But
- there are key questions on every potential investor’s lips.
How do you know what to invest in? How do you build a profitable apartment portfolio? How can I turn my apartment real estate investing into a risk managed, profitable business?
If you’ve asked yourself these very questions you are not alone, and the truth is, successful apartment investing can be hard if you don’t know the ropes. The good news is, with the right level of knowledge and professional apartment property management, apartment process improvement consultants and multifamily financing solution, you can be investing profitably in no time.
Get ready for this article that will take you through some of the top tips for apartment real estate investing.
The impression that many people have for apartment real estate investing is that investors are using their own capital upfront. This can make it hard to figure out when a good time to invest is. In reality, for the majority of investors, 44% use finance and put down 20-50% themselves.
Understanding financing is crucial to structure profitable deals that serve you well in the short term as well as in long term investments. The team at Better World Properties LLC and Better World Holdings LLC helps investors improve their lending footprint so they present to lenders with the best foot forward. This can dramatically affect the bottom line over the lifetime of an apartment deal.
How to Make Your Apartment Portfolio a Success
One of the biggest reasons people get into apartment real estate investing is because managing multiple residents in one location, at scale, is a lot easier and also a lot more profitable. What you provide in terms of value and services for your residents can have a huge influence on your success, as well as the health of your bank account.
Understand Your Target Market
When investing in apartments, it’s crucial to understand your target audience. This allows you to provide a community that offers everything they may need and encourages them to stay long term.
One of the largest demographics in real estate right now are renters under the age of 30, who make up 50% of rented homes in the U.S. Of these millennial renters, there are some key demographics that you should be focusing on to attract the majority of renters.
Here are some of the key aspects that millennials value when renting:
Millennial Pet Ownership
Pet ownership is up generally, with 68% of American households now owning a pet. Millennials make up 35% of all pet ownership in the US, the highest percentage, 3% higher than baby-boomers.
Not only are millennials the largest generation segment of pet owners, they also make up for more than 50% of reptile, saltwater fish, and small animal owners.
By building your property to cater to this pet-friendly audience, you can build a strong community that is looking after not only the pets, but also their owners.
It might surprise you to know that 76% of millennials say they enjoy cooking at least 4 times a week. Speaking to the foodie generation is critical and an upgraded kitchen can do just that.
Quartz or granite counters, stainless steel appliances, and decorative designer tiled backsplashes will not only catch their attention, but also sway their opinion to rent with you.
Smart Controls and Charging Outlets with USB Ports
I wish I could find a statistic on how many millennials would rent a property based just on it having USB charging outlets. You can bet your last dollar it would be a serious percentage for something which wouldn’t cost much to put in place.
It may seem like a small convenience but in our ever-growing digital world where there are more mobile devices than people, it can be an incredible feature to offer. Most apartment buildings don’t come with these as standard, so it can be a very easy way to make you stand out from the crowd.
Putting these small appliances in alongside smart controls could lead millennial renters to see your apartments as technologically focused, and more desirable to rent.
Smart controls such as programmable controls are an eco-friendly way to reduce down costs for renters. Smart HVAC controls are on the rise, these devices can self-learn the habits of the household and owners can control them from their smartphone.
Fitness Areas, Bike Racks and Comfortable Outdoor Areas
Of people aged 19-29, 76% are more likely to be undertaking gym-type activities such as fitness classes, yoga, pilates, bodyweight exercises, etc. A small room with a couple of treadmills won’t cut the mustard these days. People are looking to connect with others in the community.
Millennials will often look for more studio-based fitness areas to align with their fitness regimes. This can have the added benefit of offering a community aspect to your apartments, with a strong community aspect being another reason renters stay in your apartments longer.
Bike Storage and Racks
Biking is rising rapidly in America, with the US census reporting that bike usage has risen 60% in the past 10 years alone. When floor space is a premium, an amenity like bike storage or bike racks can attract these renters to your property.
Outdoor Community Spaces and Wi-Fi
Again when thinking about sacrificing square footage in apartments, a great communal area can be just the ticket to help your potential renters see more space available than just in their apartment.
With many millennials, having flexible jobs resulting in working from home, having a comfortable community area paired with a strong community Wi-Fi signal, can be a hugely appealing prospect. Comfortable outdoor furniture, year-round fire pits and outdoor portable heaters, and usable rooftop spaces can be great ways to add extra appeal.
Make Apartment Real Estate Investing Profitable by Making Your Properties Stand Out
By offering up-to-date amenities that speak directly to your targeted renter demographic, you can not only retain your renters for longer periods of time but charge higher rents and attract the most desirable tenants.
Is it time for you to add apartments to your investing portfolio? Would you like to learn how to take your existing apartment portfolio to the next level? Give us a call.
Better yet, come visit. We’d love to show you around Texas and share some Texas barbeque. And, we love to talk apartments.