10 Effective Apartment Renovation Strategies for Owners

Keep multifamily property ROI as high as possible by implementing effective apartment renovation strategies on multifamily units.

When apartments become outdated and rundown, it is more difficult to keep units full while increasing lease rates.

Building owners can see a big increase in ROI by doing some simple and logical renovations to apartments and commercial spaces to make them appealing to renters and lessees. This appeal increases the rent value, which decreases the number of empty rental spaces while simultaneously allowing for the increase of lease terms. Keep reading to learn about 10 effective apartment renovation strategies for owners.

Renovate the Apartment Kitchen

The single most appealing space in any home is the kitchen. An effective apartment renovation strategy must start with the kitchen. When the kitchen is renovated, the rental value of the entire unit increases dramatically.

Homeowners sometimes complain when they do not get a good ROI on a kitchen flip when they immediately resell the home. This is because on a flip, they may receive only 50% to 60% back on a $35,000 investment when they turn around and sell the home within the same year.

However, rental properties are different. The idea is to renovate a single time, then receive passive income on that investment until it has to be renovated again. If lasting materials are used, this investment can keep paying for a couple of decades or more before a major facelift is needed inside the unit. Meanwhile, odds are that rents will keep increasing even as the unit ages.

For this reason, property owners are wise to renovate using durable materials that will not need additional maintenance and replacement for a very long time. This approach simultaneously decreases maintenance costs while increasing rental income.

Cost-Effective Ways to Renovate an Apartment Kitchen

When prospective renters are looking at units for rent, the first concern is the price. Renters will put up with a lot of bad unit design to find a place that they can afford. However, for those looking to rent higher-end units, the items that they expect to be in the unit are washer and dryer units, a nice kitchen, and a spacious master bathroom.

Thus, it stands to reason that providing useful and attractive kitchens/kitchenettes will help to keep apartments full at maximum rents. Here are a few general kitchen considerations that will make tenants happier to pay more rent and stay in the unit rather than hunting around for something better.

Increase the storage capacity in the kitchen. If space is available, a small pantry with a door on it will make most renters very happy.
Maximize cabinet space, and use mid-range cabinets or commercial cabinets rather than super-cheap laminate cabinets. They have a nicer feel, last longer, and help tenants to feel better about the monthly cost of living in the unit.
Include full-size appliances if possible. Unless the space is very small, the inclusion of full-sized appliances is much appreciated by tenants. It is frustrating for a tenant to bring home a large take-n-bake pizza and find that it will not fit in the diminutive oven.
Spend a few extra dollars on deeper sink basins. Stick with stainless steel for longevity and cleanliness. Porcelain-enameled sinks stain, scratch, and chip out, which makes them look old well before their time. This is one time where choosing the old standby pays off, but deeper sinks are always appreciated.
Choose all-in-one sprayer units for the sink faucet. The separate vegetable sprayer units tend to break or leak, causing damage under the sink. The faucet/sprayer units with extendable hose ends are much more robust and modern. Including an extendable sprayer encourages cleanliness.
Do not install garbage disposals. Tenants inevitably put things down that do not belong, greatly increasing maintenance calls on these units. Additionally, those that try to self-service the units tend to make the sink basin leak underneath.
When it comes to refrigerators, avoid units with in-door ice and water service. Tenants tend to break the touch displays and cause leaking down the front of the refrigerator door.
Full-size ranges and trendy colors are recommended, but stick with traditional knobs and buttons. Tenants will often break out touch-sensitive displays, causing expensive repairs. Knob replacement is cheap and easy.

More items in the kitchen should be considered when choosing to renovate an apartment space to increase ROI, such as cabinetry, countertops, and flooring, which will be covered now in this article.

Invest in Good Cabinetry

Both kitchen and bathroom cabinetry get well used, but the kitchen cabinetry will be used multiple times a day, and tenants appreciate cabinetry that is both functional and beautiful.

Commercial cabinetry is available that has the needed longevity as well as the trendy and sleek looks that prospective tenants are willing to pay for. The ideal situation is one in which the investor creates a new cabinetry solution that fits in the budget, will last for years to come, and will be seen as an attractive asset to the unit.

It is wise to go with commercial cabinetry professionals rather than purchasing DIY cabinetry and piecemealing it together in each unit. Often the cabinet package purchased from a cabinet installer will be of higher quality and cheaper cost overall than hiring out handyman installation of cheap mass home improvement store cabinets.

A professional cabinetry company can get investors the best price on cabinetry because of their buying group advantage, but they are also able to provide custom solutions for the interior of any apartment. This is the perfect match for customization and savings.

Additionally, many commercial cabinet suppliers can incorporate sinks, faucets, countertops, and other accessories into the package at significant savings to the building owner. These items are installed along with the cabinetry, making a quick and easy solution that is sure to look seamless and attractive to prospective tenants.

For those who are renovating commercial space into single-family apartment units, it is wise to consult with a commercial cabinet company during the design phase. This enables the investor to work in tandem with the architect and cabinet company to design kitchens for the units that use more standard cabinet designs, thereby saving money in the long run.

Invest in Durable Countertops

This is vital throughout the home. Countertops should be installed that are as durable as possible. Many investors insist on using Formica countertops, which are quickly stained, burned, cut, scratched, and chipped. This wear and tear decreases the overall value of the rental space and is a definite detractor to prospective tenants. It also does not add value when the investor is looking to sell the space in the future.

The most durable and attractive countertop available is quartz. While the cost to install quartz is unquestionably more expensive than Formica, the lifespan of a quartz countertop is over 100 years. Simply put, this is an investment that will need to be made only once.

Quartz countertops are made from the natural mineral, quartz, which is ground finely and combined with super hard resins, molded to the desired shape, then baked to a hard, shiny finish
It is a wildly popular countertop material because of its durability and longevity, as well as the sleek, beautiful finish

Quartz should be considered for all countertops in the unit. Anywhere that they are used, they will help to prevent damage to the unit, which decreases replacement and maintenance costs over the long term. They are also a great asset to have in place for reselling the building. All future investors will see the great benefit of having such durable materials in place in each unit.

Crushed glass countertops are similar to quartz, but they use crushed recycled glass set in durable resins to create a durable countertop surface. These can come in more fun and adventurous colors, but wise investors stick with neutral colors for maximum ROI.

Invest in Durable Flooring

Invest in durable flooring. Renters are notoriously hard on flooring. Carpet, linoleum, and hardwoods get quickly scuffed and nicked, requiring more frequent replacement. Instead, opt for finished concrete, natural stone, a thick engineered hardwood plank, or ceramic tiles.

Go for a timeless look. Choose trendy neutrals for all of the more permanent renovations such as flooring, cabinetry, and countertops. Trends will always change, but certain neutrals, such as light greys, whites, blacks, and beiges, will have a longer ROI longevity for increasing rental values.
For units that currently have carpeting, it is wise to swap out the carpeting for durable flooring such as large ceramic tiles as tenants move out rather than repeatedly investing in carpet cleaning services and reinstalling cheap carpet and padding. This also allows for quick and easy sanitation of pet-friendly units.
There are very large tiles available that look like wood. When these are installed professionally with very small grout seams, they look great and hold up incredibly well over time. This is only one of the many selections available, but they are easy to maintain and look trendy and attractive, increasing unit ROI.
If the opportunity arises to change out all flooring at once, this will save money on renovation. This is really only possible when renovating an old building or planning a new one. The more renovation that can be done at once by a company, the cheaper both labor and supplies will be.

For those who are renovating industrial buildings, there is often brick or concrete flooring that is already available in the space. These floorings should be leveled, sealed, and used as-is for a modern industrial vibe in the space. Many great design choices can be made around both brick and concrete flooring that will attract more tenants and higher rents in the space.

Renovate the Bathrooms

This is the second space that really matters to tenants, especially those who are considering spending a little more on monthly rent. If there is a master bathroom in the units, then it should be updated to a better trim than the secondary bathroom.

Consider using a quartz shower surround. It is durable, highly scrubbable, and it will far outlast the other parts of the bathroom, such as the toilet, flooring, and faucets. This is a benefit because it also is more costly to replace, so prolonging the lifespan of the shower surround pays off in the long term.
Use quartz countertops. As with the kitchen, these countertops will last over 100 years, making this a one-time investment that will greatly increase the ROI over time.
Choose large ceramic tiles for the flooring. They look good, hold up to traffic, moisture, and soil, and can be cleaned and sanitized easily in-between tenant occupancy.
Do not invest in very high-end faucets and showerheads. These tend to get clogged and receive high levels of wear and tear. They will likely need to be replaced every so often, even if high-end pieces are used. Opt for middle-grade accessories that look trendy and sleek without costing a bundle.

When renovating bathrooms, be sure to install all shelving, towel hooks and bars, and mirrors into studs. A contractor will do this naturally, but often investors choose to do some accessory installation on their own to save money. Those who use sheetrock anchors instead of bolting accessories into wall studs will have sheetrock repair to do later.

Install Washer and Dryer Units

No matter the building that is being renovated, there is no question that the availability of a washer and dryer in the unit is a big draw for potential tenants. While a laundry room in the building is considered to be better than having to use a laundromat, the inclusion of even a small washer and dryer will pay dividends.

Consider adding a small stacked set in the kitchen, if space allows. For those who are renovating industrial buildings into apartments, consider adding space near the kitchen for both a pantry and a stacked laundry unit.
Consider adding a small laundry area into one of the bathrooms. This can be as simple as a nook that is set aside with a stacked unit inside. Landlords are often surprised to find how excited prospective tenants get at the prospect of being able to do laundry in-house.
If there is a small utility closet inside the apartment that houses the water heater, this is a natural place to position stand-alone or stacked washer/dryer units.
Anywhere that water is already being plumbed and drained away is the least expensive place to renovate for a small laundry facility.

Many property investors and landlords ignore the basic need for their tenants to do laundry, and this is unfortunate. The addition of some sort of laundry space adds greatly to the value of the unit both as a rental and as a future property sale. The larger the laundry area can be, the better. Many times the laundry and pantry are combined. Units with attached garages can have an incorporated mudroom, laundry room, and pantry.

Landlords must keep in mind that tenants who are not given laundry facilities will have to pay to do laundry elsewhere. This means that they will also expect to pay lower rent, and will be easily lured to a better apartment that has laundry facilities when their lease is over.

Landlords who do not wish to be liable for the added expense of washer and dryer maintenance can choose to simply provide the plumbing for washers and dryers, and allow tenants to purchase, install, and maintain their own washers and dryers. It is recommended to require that a maintenance supervisor visits to inspect the installation before use so that potential leaks can be caught before damage is done.

Renovate with Paint

Many landlords and investors choose to repaint both the interior and exterior of the building using “contractor grade” or “builder grade” paint. This is a mistake. This type of paint has a lower proportion of acrylic binders that cause the paint to adhere more thickly to the walls. It is formulated to be the cheapest way to get color on the walls, but it does not have the same scrubbability and longevity as higher grades of paint.

Instead, go for a higher grade of paint, in fact, the highest that can be worked into the project budget. A nice exterior paint will last for up to 10 years. While that does not seem like a long time, the exterior paint is vital for keeping wood components safe from the weather. Having an apartment building repainted frequently is a wise investment.

Indoor paint should also be thick and scrubbable. Most investors choose to paint all interior surfaces white. This is fine, but a nice soft white or dove gray is both clean and trendy. Good paint will protect the walls from minor scuffs and scratches and be easy to touch up in-between tenants.

More trendy apartments often have color accent walls. This is a good option for those who know the type of tenants in the market and are comfortable adding a flair of color to the indoors. Colors such as navy blue, blue-gray, and gray-green are quite safe choices for adding paint accent colors without risking turning away prospective tenants.

Paint is the easiest thing to change out in any building space, so consider using it frequently to update the space indoors and outdoors as needed, since the flooring, cabinetry, and countertops will not need updating for decades to come.

Renovate by Adding Commercial Space

Some apartment buildings are located in urban areas where downstairs commercial space could bring in a great ROI in several ways. Effective apartment renovation strategies that incorporate commercial space will take into account the demographics of the area, as well as goods and services that foot traffic in the area will appreciate.

Commercial space can be leased for much higher rates per square foot, without needing to include as many renovations as apartments may need. Depending on the lease agreement, the business may be responsible for all renovation and maintenance that is needed in the space.
Tenants are willing to pay more and will compete to live in a building with useful commercial properties downstairs, such as cafes, convenience stores, restaurants, or fitness centers.
When renovating a commercial space into student housing or apartments, consider leaving some commercial space downstairs for amenities that will be useful to residents. For student housing, commercial spaces that include amenities such as laundromats and sandwich shops are ideal.

The thing to keep in mind for effective commercial space renovation is to keep the exterior as true to its roots as possible during the updating. This makes the building blend into the urban environment, even as the inside is completely renovated and updated. This is a very popular and cost-effective trend.

Renovate a Commercial Building into Apartments

Across the United States, most major metros have an affordable housing crisis. While those who can afford it choose to move into the suburban sprawl to avoid downtown crowding and high rents, many younger singles and couples desire to move into the downtown areas to take advantage of mass transit and walking distances. They can afford to pay slightly higher rents due to vehicle savings.

To accommodate this trend, many vacant commercial buildings are being renovated into single-family apartments and student housing. While student housing does not need to have as many amenities and as much interior space per unit, it also tends to go for much lower monthly rent.

Single-family apartments need more investment to renovate into desirable living spaces, but once this is accomplished, the rents can be significantly higher, and units are well sought-after.

Take advantage of high ceilings with loft bedrooms, loft storage, and trendy commercial lighting.
Use open concept floor plans for living areas that combine kitchen, dining, and living room into the same area. This cuts down on the cost of building walls while helping the grandeur of a high-ceiling commercial building to become an asset to the new living space.
Place kitchen and bathroom plumbing along the same interior walls as much as possible. This helps to cut down on the costs of pipes and plumbing during installation.
Upgrade heating and air conditioning units as needed. Old heating and air conditioning units are inefficient. While replacing them costs a tidy sum, newer efficient units will keep tenants happier and cost less in both fuel and maintenance.
Use existing interior and exterior features as much as possible, while incorporating them into the new apartment designs. For example, exterior windows should be incorporated into the living units. Existing floors such as cement and brick can be leveled, sealed, and used indefinitely.
Very old light fixtures can be reused, but they may need to be rewired by an electrician. Still, the cost of rewiring is much less than buying all new fixtures. The old fixtures can be reinstalled and lit with efficient LED bulbs for a great look.
Be sure to fix and maintain elevators, fire escapes, building fire sprinklers, alarms, and exterior locking doors. All of these, properly maintained, are seen as great assets by prospective tenants.

Sometimes, renovating old commercial buildings may cost more initially than it would have to demolish the building and start over. Sometimes there are large problems discovered during the renovation that must be fixed, such as foundation problems. Regardless, the refurbishment of an old building is generally considered to be of more lasting value than starting over, and with luck, most of the building will be usable.

Renovate by Adding Luxury Office Space

For urban apartments that are geared toward young professionals, add luxury office space downstairs. Leasing some downstairs office space with a lovely bathroom to a law firm will serve to bolster the value of the apartments upstairs.

Add co-working space on the ground level of the apartment building. This is another money-maker for buildings that are geared toward the lifestyle of young professional people. These spaces can be divided into desk-for-rent areas, rooms for rent, or small offices for rent. The addition of luxurious bathrooms is all that is needed to attract tenants of all kinds for both upstairs and downstairs leasing.

Add a coffee bar or small cafe to the workspace to create a perfect one-stop-shop for young professionals living in or near the building. These spaces can also incorporate on-tap beers and outdoor seating that allows people living in and near the space to gather. These spaces are easy to lease to entrepreneurs who will be glad to offer coffee and beer services to tenants in the building.

The key to designing these workspaces is to use the same high-quality principles that are used when designing apartments to last. Invest in high-quality commercial cabinetry and long-lasting desktops, countertops, and flooring. These materials will outlast the tenants and bring a great resale value in the future.

Contact Superior Commercial Solutions

When implementing an effective apartment renovation, the focus needs to be on the longevity of the materials and installation. Superior Commercial Solutions specializes in designing cabinetry, countertop, and accessory packages to provide a complete solution for investors and developers who are implementing apartment renovation strategies.

They design complete solutions for multifamily units, student housing, hotels, and assisted living facilities across the United States. Superior Commercial Solutions has the expertise to take the project from design to installation without a hitch, bringing the best value to the project. Click here now to get started on your perfect apartment renovation today.