How to Make Your Multifamily Home Attractive to Tenants

Multifamily homes enjoy great popularity as real estate properties in the US. These buildings offer everything an investor might dream of: stable income, low risk, and good potential for value growth. It's no surprise that this is one of the fastest-growing segments of commercial real estate in the US, with total sales reaching a record $294.1 billion in 2022.

According to the National Apartment Association, rental rates, demand, and employment levels set new records in 2021. Average rents rose by 6.3% compared to the previous year, demand soared, and employment levels reached 96.5%, the highest level since 2000. The popularity of such buildings continues to rise today.

At the same time, the multifamily segment has become more competitive as everyone wants to try their luck. Maximizing occupancy and demand depends on tenants loving your property and signing a lease immediately. Research shows that certain features and improvements can set your multifamily home apart.

Here are several tips for adding value to your multifamily home to make it attractive to potential tenants:

Make the Appearance Perfect

Aesthetics matter not only for buyers. Anyone looking for an apartment forms their first impression of the place. Nobody wants to live in a multifamily home that looks unattractive and neglected. Ensure the exterior is in order. Fortunately, you can implement several measures to improve multifamily units—regardless of whether they are a standalone property or part of a larger complex.

Here are some things that can make a difference:

• Update the interior and façade after each vacancy.
• Ensure the area is clean and free of clutter during tenant viewings.
• Update lighting to create a positive atmosphere and save energy.
• Add greenery with planters and flower boxes at entrances for added appeal.
• Check for leaks, cracks, and other maintenance-related issues and address them promptly.

These simple aesthetic factors significantly impact the attractiveness and rental value of your home.

Add Amenities to Units

Multifamily homes account for 25% of new residential construction in 2020, so competition for rentals is increasing. Amenities are an important factor in selling multifamily homes.

For many potential tenants, additional amenities can be the deciding factor. While adding amenities requires capital investment, raising rents may quickly offset costs.

Here are some amenities that will make tenants fight to get your property:

• Unit amenities: air conditioning, modern appliances, updated kitchens, and pet-friendly units
• Common amenities: parking, laundry facilities, pool, gym, and Wi-Fi

Create a Sense of Security

Break-ins in residential buildings happen more often than before. Statistics show that over half of all thefts occur in homes. Multifamily buildings are also vulnerable to risk, so security becomes an advantage for potential tenants. Reliable protection of your property is not only strong doors and windows, but also quality locks.

Security features such as alarms, motion sensors, and surveillance cameras can increase home safety. Installing access control systems is also a good investment since it prevents unauthorized entry. A feeling of security makes current residents more comfortable and attracts new tenants.

According to The Flying Locksmiths, commercial access control reduces risk for all types of real estate, from office spaces to stores, factories, and rental properties. It's a low cost for safety, so owners should never be too relaxed.

Use Smart Technologies

An survey shows that 82 percent of American renters expect at least one smart device or system in their housing. Moreover, they are willing to pay more for real estate with smart technologies. You can leverage this trend to increase demand and long-term value of your multifamily home.

Smart lighting, motion-sensor surveillance cameras, smart thermostats, and electronic locks are all valuable upgrades that will set your home apart. Although these installations may be expensive initially, they offer high returns and ensure long-term occupancy of your multifamily home.

Conclusion

The multifamily rental market is hot, but high supply can reduce the benefit of high demand. As competition increases, investors must ensure their home is attractive to tenants. Small investments can make a big difference in this situation. Even if you need to spend a little, you shouldn't hesitate since the return on investment will be much greater and better than you can imagine.