When it comes to metropolitan areas and living the bustling city-life, most people prefer living somewhere close and a place that compliments their fast-paced lifestyle. As a result, there has been a growing trend of people leaning toward apartment complexes and renting out a unit in multi-family properties to give them just enough functional space without expensive rental fees.
And, for this reason alone, more real estate investors are looking to acquire multifamily rental properties and apartment complexes to maximize their ROI and earn on those affordable overhead costs. However, one area of the home that most rental property owners are forgetting is the common area, and it could potentially be losing a lot of money and added value.
Getting More Things Done
You see, we’ve moved past the idea that only luxury buildings and high-end hotels get to enjoy full-blown amenities and facilities to use both for comfort and work. Nowadays, the line has blurred, and there are many examples of class B apartment complexes that feature multiple amenities and make the rental life feel like the height of living.
Plus, with most people stuck inside and nowhere else to go, having fully-equipped common areas that work to the tenants’ advantage allows them to get more things done. Likewise, they’ll be more agreeable and consider sticking with you in the long-term, which solves the problem of vacancy rates or any tenant droughts.
#1 Taking It To The Backyard
For multi-family homes of up to four units and apartment complexes with useable backyard space, this is a free area that you can utilize to add facilities and value to your rental property. Plus, depending on your location, it can be very secluded and work as a getaway for your tenants. Any added beauty will undoubtedly help with an appreciation for the property.
- Recreational Outdoor Space: One excellent idea is the allocation of the backyard space for recreation and fun, which we all need during these trying times of nothing to do and at the risk of going into strict lockdown measures. From swimming pools to a small basketball court, and maybe even an outdoor cooking area all work well as upgrades.
- Outdoor Lounge Area: For those not blessed with as much backyard space, instead of focusing on recreation, you can turn it into a functional area for lounging and relaxation. With a good budget on hand, you can add very comfortable seating, good enough shade, and many things they’ll appreciate. Also, make sure the WiFi reaches outside too!
#2 Utilize The Roof
While not so much of an option for rental properties without a flat-roof design, utilizing the roof space for common areas is a famous idea that many luxury buildings and hotels have been using for a long time. The biggest advantage of rooftop areas is the scenic views they generate, which can really make a tenant feel like they’ve found a place to stay for good.
- Workout Facilities: Working out and getting in shape has been the highlight of everyone’s 2020, and moving into 2021; it seems that the goal for healthy living is still going strong. So, if you want to capitalize on this innate need to exercise, you should consider adding workout facilities on your rooftop for tenants to use.
- More Lounge Areas: If fitness centers don’t suit you, one common area you could also opt for is making more lounging space. Like we’ve mentioned before, nothing beats the views from the rooftop. Just make sure to add places for shade for rainy weather and when it gets too hot.
#3 Address Specific Needs
Of course, there’s only so much a general perspective to common areas can provide. Since needs can vary depending on location and the immediate locality, your choice of common areas should address the tenants’ specific needs. Yes, you can build lounging space and add fitness facilities, but if there’s a local gym nearby and more than enough room to relax, these investments won’t get you far.
- Laundry Rooms: People hate doing laundry, and it can get pretty annoying to make a 5-minute drive only to end up leaving something behind or washing the sheets wrong. And if your tenants struggle with the same problem, investing in a shared laundry room will do you wonders and make the living conditions much better.
- Storage Space: If you’re housing tenants that generally need extra storage space, simply adding rooms for storage is an easy and affordable fix everyone can enjoy. Plus, it can also work as an extra stream of income if you come to an agreement.
However, Don’t Stretch Yourself Too Thin
But, while all these things do sound good on their own, remember that you can’t invest too much and end up stretching yourself too thin. Tying down a huge budget on renovations for common areas is not needed, so stick with what you can afford and work your way up slowly. The last thing you want is for something unexpected to come up and not have the immediate cash available to pay your obligations.
Get The Most Out Of Your Investment
Overall, if you desire to get the most out of your investment, adding common areas is an excellent method of bringing up the value for multifamily properties and apartment complexes. It makes the living space more appealing for potential tenants and encourages existing tenants to consider staying for the long-timer.