Real estate investors depend on the revenue from their properties, and tenant satisfaction is necessary to sustain it. But a yoga studio, full-service salon, and virtual golf simulator aren’t crucial in preserving renters’ comfort, and an investment can still prove profitable with fewer amenities and a focus on the more essential ones.
It comes down to prioritization — determining the difference between what a tenant finds indispensable and what they can live without. When a real estate investor reaches that equilibrium, they’ll earn the most from their investments. With research and strategy, this balance is possible and probable.
Let’s take a look at a few important apartment amenities that are well worth the cost. These features are ones that tenants will always find value in, regardless of current trends or future speculations. Investors don’t need private screening rooms or lounging pools, but they’ll certainly benefit from the following.
1. Available Parking Spaces
Most people who’ve lived in a major metropolitan area are familiar with the struggle of finding a parking space. Navigating a busy block crowded with competing cars is often frustrating. Tenants don’t want to return to their apartment complex to find that the problem has followed them home.
When surveying potential investment opportunities, real estate investors should give greater consideration to residential properties with more parking space. They should also take inclement weather into account, as covered parking garages are often in high demand in areas that see a lot of rain or snow.
On a fundamental level, parking is a basic convenience that all tenants should enjoy. In failing to meet this simple expectation, investors risk their renters looking elsewhere for housing, moving to better properties that accommodate their needs. Among all apartment amenities, parking is essential to satisfaction.
2. Reliable Wi-Fi Connection
Secure connectivity is necessary in this day and age. Tenants use the internet for recreation, of course, but many depend on the web for their work. In fact, around 20% to 25% of the United States workforce teleworks at some frequency, and that number is likely to grow in consideration of past data.
Unfortunately, apartment buildings are notorious for their poor connectivity. The density of people sharing the same allocation of bandwidth causes internet speeds to falter, and the sheer number of Wi-Fi-enabled devices is an additional strain. With old technology and poor service, it turns into a serious issue.
Real estate investors should place their money in new tech infrastructure for their residential properties. In hiring a professional technician to inspect your wiring and systems, you can move forward with alterations to improve connectivity. A simple call to the internet provider might yield quality suggestions.
3. In-House Washers and Dryers
After a long week of work, allocating an afternoon to laundry feels like a waste. A tenant doesn’t want to spend more time doing laundry than they need to, and hauling a load to the local laundromat is an enormous inconvenience. They would much rather use an in-house washer and dryer that they can easily access throughout the week.
The rental lifestyle and homeownership are very different, but a tenant shouldn’t feel like they’ve made a poor decision in choosing to sign a lease. In affording them the same appliances that a homeowner enjoys, without the maintenance costs, you can highlight the advantages of renting an apartment.
While tenants enjoy in-house washers and dryers, coin-operated machines also profit investors in multi family homes for rent. You can earn a secondary source of income on your building’s laundry room, in small increments, with every load. The installation of a few machines is a wise investment that has the potential for high returns.
4. Pet-Friendly Features
Allowing pets in rental properties is a difficult decision for many real estate investors. On one hand, the risk of greater damage and disturbance has the potential to rack up maintenance costs. On the other, pet-friendly policies are attractive to new tenants and can lead to more long-term occupancies.
Younger renters increasingly look to accommodate their furry friends, especially as their desire to start families gets pushed farther into the future. And it’s not just a renter thing — even 33% of millennial homebuyers are motivated to accommodate their pet over getting married or having children. With these trends in mind, it makes sense for real estate investors to spend a little more to offer pet-friendly apartments.
While pet ownership isn’t a traditional amenity, it’s make-or-break for many tenants. If investors decide to permit pets on their rental property, they can make up for the added costs with a refundable pet deposit or slightly higher rates. As an added plus, there are fewer competitors to draw these tenants away.
How to Prioritize Apartment Amenities
Real estate investors who determine their budget can decide which apartment amenities are reasonable and which are unrealistic. While some can afford a door attendant, others are far better off placing their money in new tech infrastructure. Through strategic investment, you can make the most of your rental properties.
Ready to start exploring the most lucrative rental properties to buy in the US market? Sign up for Mashvisor for readily available analysis and calculations.
It isn’t an exact science, but the four apartment amenities listed above have proven value. How much value changes from investor to investor and from property to property, but the advantages of implementing these changes are often well worth the cost.
This article has been contributed by Holly Welles from The Estate Update.