If you want to become a Landlord, The Following May Be Of Interest.
FACTOID #1: A full 90% of new multifamily construction today is rentals according to one study.
For the last several years, demand in multifamily has outpaced new construction, causing some places to see huge spikes in rent prices. Still demand has not slowed.
FACTOID #2: Multi-Family prices have been growing by up to 8% year-over-year.
Listed below are some of the most important things that today’s tenants are looking for in a rental.
As with any other type of business, the location of your building can, and likely will, have a large impact on the revenue you bring in. Tenants often look for a property that is close to their place of employment, and that offers easy access to grocery stores, restaurants, parks, and more. Tenants are often willing to pay more, or even overlook less than desirable aspects of the unit, in exchange for the quality of lifestyle offered from being in a great neighborhood. Millennials are attracted to the convenience of advanced technology. They expect that same kind of convenience in their living environments (grocery store within walking distance, public transportation just a few blocks from the apartment, office or workspace accessible by light rail or bus). The more walkable the location, the more attractive it is to young renters.
With more and more consumers choosing to rent, it stands to reason that more families are choosing to rent rather than own. Along with location, tenants are likely looking at the area’s school district, as well. After all, every parent wants the very best for their child — and a safe, quality education is at the top of many parents’ lists.
Think about it — no one enjoys driving around for an hour looking for a parking spot that’s close to home. While there may be ample parking spaces for your suburban property, parking can be a bit of a challenge in urban areas. If you can’t offer easy off-street parking for your tenants, consider directing your tenants to a parking garage that’s located nearby.
…but not all tenants have cars.
Multi-Modal Transportation Options for Residents
Parking lots are disappearing to make room for more pedestrian friendly options. Most millennials in urban areas do not own cars. They bike, walk, or ride to work. Some high-end multifamily developers are including bike repair and storage “shops” in their buildings or providing ridesharing pickup and drop-off locations on-site.
Convenient On-Site Package Delivery Systems
More than a quarter of the workforce today does not work from an office. Mailing letters or shipping packages usually requires a trip to a FedEx or post office. One amenity attracting young professionals are on-site package delivery systems where packages are received and signed for in real-time through an alert sent to a tenant’s smartphone. Packages can also be sent out from the apartment with pickups scheduled from the apartment’s online platform.
Activities Space and Luxurious Common Areas
Gyms are not the only community spaces tenants want. New developers will need to think about adding an on-site café, workspaces, and lounge areas. Some unique ideas include community gardens and wine tasting rooms, community theaters or apartment pubs or pool halls.
Renovations and Upgrades
Sometimes, the smallest details are the ones that really make a house feel like a home — and that can secure a lease on your space. Upgrades that are smart and strategic, such as hardwood floors or stainless-steel appliances, can help attract higher quality tenants. Other renovations that rank highly among tenants include renovations in the kitchen and bathrooms, updated cabinet hardware, central air conditioning, and a new kitchen backsplash.
Think of these features you offer your tenants as a way of demonstrating to them how you expect to be treated in return — and the care you expect to be given to your building. Even small steps can indicate to your tenants that you really care about the property and that you will be responsive to any necessary property maintenance — always a big concern for renters. By offering these features that tenants are looking for, you are differentiating your property from the competition — allowing you to attract and retain better tenants and enjoy a better return on your investment.
If you have any questions about any of the above information call or text Joe Luca, REALTOR® at 401-580-9797.The above information was obtained from various web articles published by NAR, CBRE, and NAI Global.