What apartment building amenities are most in demand now?
Apartment building investors must stay on top of evolving trends and the amenities renters want most if they are going to make profitable moves and renovations. The right improvements can make a substantial difference in occupancy rates, how much renters are willing to pay, NOI and the value of your property. Yet, it’s not always easy to guess what tenants really want and a willingness to pay more for.
Here are some of the most desirable apartment building amenities in 2018 all investors should be alert to.
It may not sound revolutionary or hi-tech, but the Wall Street Journal’s Mansion Global and Douglas Elliman development agent say that after terraces, parking space and gyms, swimming pools are the most important amenity. Even in bitter cold destinations like Manhattan’s ultra-prime neighborhoods.
For years top selling agent in Miami, Kaya Wittenburg has said that the token ‘gym’ is out. Today, people want real fitness centers. They want real gym equipment and weights, not just a treadmill in a tiny box of a room. Real Estate Weekly reports “80 percent of renters across the U.S. want a fitness facility in their building.” In March 2018, The Ratner Team in Brooklyn reports that having a gym in the building can add an average of $600 per month to studio rents.
It used to be really tough to find somewhere to rent if you had pets. That’s changed a lot as landlords have realized just how big of a percentage of the population actually have pets. Being able to provide a great space for pets is now considered the most important factor for home buyers. That certainly applies in the apartment arena too. There can be advantages of operating pet-free communities today as a way to stand out. Though the National Apartment Association notes that dog parks and spas are in big demand. This can be a great use for outdated spaces like tennis courts and tanning rooms.
93% of renters say they want high-speed internet access according to the National Multifamily Housing Council/Kingsley 2017 Renter Preferences Report. Connecting to internet and cable when moving apartments can be a real pain. Including it can be very attractive. This can be the community-wide, in units or in lobby, coworking, gaming and cafe spaces.
One of the biggest changes in the apartment space is the need for handling resident packages. We are in the Amazon and Uber Eats era. You’ve got to supply a safe space for residents to receive online shopping orders. Even if that may mean reducing parking spaces or storage.
Having lobby attendants has boosted the potential rent per square foot and monthly rental rates for years. It can also add a big cost and additional liability. Now digital or a virtual doorman may offer a hybrid solution which is more affordable, efficient, profitable and lower risk. As this technology improves expect this to be an even sweeter spot to enhance your buildings.
ABOUT THE AUTHOR
Bill Zahller is the President of Park Capital Properties and resides in Asheville, NC. As a Multifamily Real Estate Investor and Syndicator, he founded Park Capital Properties in 2016 after 14 years involvement in real estate investment. He works with accredited investors and professionals who are interested in real estate investment, diversification, and financial freedom.
Bill has been flying since high school. His father was a Naval Aviator and Captain for TWA. Bill has been flying professionally for over 25 years, 23 of those at his current company. He has accumulated over 12,000 hours and 7 Jet type ratings. He has also held Instructor, IOE Instructor and NRFO pilot positions with a large fractional flight company. He is currently flying the Global 6000 in a long range mission capacity. This keeps it interesting – one week its Beijing or Sydney; the next Rio or Rome.
Bill is also the founder of the Asheville Multifamily Investor Club. Visit www.ParkCapitalProperties.com for more information.