Getting a solid return on investment (ROI) for apartment amenities is never guaranteed, especially as competition in the multifamily housing space heats up. What were once differentiators (think on-site fitness centers and extra storage) are now commonplace and expected by renters.
Property managers all over the country are investing in amenities ranging from the practical (car charging stations) to the downright odd (chicken coops) to boost their property value and collect the rent to match.
But what perks will make your potential renters say “Wow, what a deal!” and entice your current tenants to renew their lease regardless of any rent increases? Let’s dive in.
Apartment amenities with the best ROI
Comfortable — and versatile — common spaces
Apartment dwellers aren’t the type to put up walls, so to speak. In fact, industry leaders are noting that renters want to know their neighbors. Transforming your lobby or unused common rooms into another living space for your tenants to socialize, relax solo alongside others, or even work (the number of telecommuters has grown by 110% since 2005) is a cost-effective amenity guaranteed to sway any potential renter towards your property.
The musts:
- Plenty of seating — get creative with couches, chairs, hammocks, and giant bean bag chairs!
- Outlets (and lots of them)
- Television or projector
- Desks
The extras:
- Games like pool, ping-pong, or pinball
- Designated “quiet areas” for heads-down work (or devouring a book)
- Property-hosted events — movie nights, board game tournaments, and potlucks are all crowd-pleasers!
- Option for tenants to rent out the space
Pet-friendliness
If you’ve been on social media lately, you’ll know that folks — especially Millennials — have a shameless obsession with their pets. And it’s just those renters who are willing to shell out an extra $226 more per month on an apartment they love. So if your property isn’t pet-friendly, now’s the time to jump on board so you’re not missing out on a core group of renters willing to pay a premium to sleep next to Fido.
The musts:
- A reasonable pet deposit due on signing
- Ample space for tenants to walk their dogs
- Lease stipulations on pet damage
The extras:
- On-site dog park
- Pet-washing stations
- Free treats at the front desk
- No breed restrictions
In-unit laundry
When you’re living in an apartment, the last thing you want to do is carry an overflowing basket of clothes to the laundry room (dropping half of your socks in the meantime). And data shows that although most renters want the convenience of doing laundry in their own apartment, only 13% of multifamily properties offer in-unit laundry facilities.
The average cost of adding a washer and dryer to a unit is about $835. But since in-unit laundry is high-demand/low supply, the addition yields a favorable return on investment.
The musts:
- Tenant accessibility to owners manuals and maintenance hotlines
- Separate space (even a closet) for units
- Electrical upgrades for dryer (if applicable)
The extras:
- Side-by-side units
- High-efficiency units (a massive plus for eco-minded renters)
- Laundry detergent, fabric softener, and other laundry essentials available on-site
Decisions, decisions: quick tips on deciding what’s right for you and your tenants
Knowing your tenants is key to figuring out which upgrades will give you the best ROI. A single Millennial might be jonesing for community-centric amenity, while a Gen X’er with kids might want the convenience of doing laundry in the comfort of their apartment. With a bit of brain muscle, hints from your tenants can be your guide.
Survey and research
Every person is a potential insight. Survey your current renters on a regular basis. Their answers can inform future cost savings and smart investment decisions.
Don’t forget to get feedback from people who’ve viewed units regardless of if they signed or not. With enough responses, you might discover an asset, a deficit, or a pattern of behavior that’ll help you pinpoint where the profit lies.
Collect data
If you haven’t already, start gathering information about the performance of your amenities. You might discover that potential renters prefer the pool view versus the skyline view. Or maybe a balcony isn’t all that high on the list of must-haves. Take a deep dive and assess the demand of units with specific amenities.
Remember to look at:
- Days on the market
- Number of leases signed within a period
Data collection is a significant tool to help you optimize the value of amenities.
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