SUCCESSFUL APARTMENT REHABS

Property Improvements Increase the Value of REIT’s

In addition to producing strategic investments, multifamily rehabs benefit the owners and investors as well as existing and potential residents, resulting in maximum performance of REIT’s.

Whether it’s a major exterior and interior apartment rehab or just a property repaint and re-roof, property improvements, when executed properly, add value to multifamily communities and result in higher resident satisfaction, higher occupancies and happy investors and owners. However, it’s important to hire a general contractor with the experience and expertise in multifamily construction during the planning stages of the rehabilitation to achieve success and maintain your residents.

Once you decide to undergo a rehabilitation, prioritizing is key to achieving your construction goals. Ultimately, you want your residents to be safe and satisfied with their home. While cosmetic improvements are great for attracting new residents, you want to keep your current residents pleased and enhance their living experience. As such, improvements should first focus on ensuring the building structure itself is secure for your residents. A complete inspection of the railings, stairwells, lighting and exterior frame will help determine the immediate construction issues at the property that need to be addressed. Most general contractors will do inspections for free and give you their advice for tackling the most immediate concerns.

For example, if your buildings are leaking and have experienced water intrusion and mold, you should address the structural problem and reconstruct the exterior to prevent future damage before considering a property repaint, which will only temporarily mask the structural damage and increase the chances of mold litigation from your residents. Also, it is important to make sure the property is up to code before undergoing any renovations.

Once all safety concerns are addressed, you should look at additional ways to enhance the exterior, interiors, community amenities and overall aesthetics. These improvements also increase the value of the asset for owners while increasing the appeal of potential and current residents. Simple upgrades such as a new exterior paint scheme or renovating the clubhouse can do wonders for resident retention and satisfaction as long as construction does not disrupt the daily lives of the residents. Again, hiring an experienced and professional general contractor can eliminate the stress of decreasing occupancies during construction. Other common upgrades include new interiors, appliances, windows, landscaping, flooring, cabinets and vanities, to name a few.

Undergoing a renovation is a great option for existing owners looking to maximize the profitability of their properties or for those looking to invest in existing income producing multifamily communities. Successful rehabs communicate commitment to your residents while increasing the value of the REIT.