How Much Does An Apartment Renovation Cost?

If you manage apartments, you know that their maintenance is hard. This is especially true when you calculate how much an apartment renovation costs.

If you’re a property owner or manager, or if you’re a developer aiming to improve the standing of an apartment, read on to find out more about the expenses involved in apartment renovation.

How Much Does an Apartment Renovation Cost?

Depending on the scale of the renovation, the price estimate will fall between $15,000 and $200,000. Apartment renovation costs will vary depending on square footage, location, and extent of the work. Emergency funding in case a part of the renovation becomes costlier should also be considered.

An apartment renovation can come at an expense, but it can also be lucrative, especially when businesses can collaborate on the project to get a profit out of it. The cost will usually vary, as you’ll see below.

Types of Renovations

Renovations go beyond simple repairs and redesigning the space while decking it with new, and better, materials. These are projects that require minute budgets and planning, but when you own or manage property, you’ll want to get it at its best value so that it can make you a profit in the long run.

When you’re deciding on how to proceed with the apartment renovation, consider the three types of renovations:

• Low-end: The low-end project will take care of flooring, trimming, and painting across the apartment. Countertops can be replaced, but appliances in working order will remain, and they will be freshened up. Cost: $15,000- $45,000.
• Mid-range: This project can involve full redesigns of kitchens and bathrooms, along with a combination of more expensive items alongside budget ones. Cost: $46,000-$70,000.
• High-end: Your apartment will have access to all options, from low to high, including numerous types of materials. Appliances can be either custom-made or purchased from high-quality vendors. Layouts will be changed, which may require structural changes. Cost: $71,000-$200,000.

What Will Influence the Price?

The cost of your apartment renovation will be affected by several factors that can bring the number up or down. Let’s take a look at the most influential ones.

Location

The geographical area where the apartment can be found will have a significant impact on the prices you’ll have to pay for the renovation. You’ll find a significant difference between the cost of remodeling in New York City and doing it in Oklahoma. The good news is that you’ll also see that difference when it comes to the profit you’ll be making, as the rent differences between those two places, at market value, are also significant.

Size

The size of the project will determine the final price for it, but there is a trick you should use, especially if you have more than one apartment available for renovation. You should choose the bigger apartment for the project because professionals don’t change their quotes for smaller ones.

If you have two bathrooms or two bedrooms, this will also save you some money in the long run. It’s more profitable to have two rooms renovated by contractors than to have a smaller apartment done. In this case, it’s usually preferable to get professional labor to do the entire renovation across all rooms instead of just one or two of them.

Labor Quality

Going for an established team of laborers will reduce the risk of investing in poor-quality work, but it will also be a more expensive endeavor. Lesser-known teams may have a lot of quality to offer for cheaper, but it’s best to do a lot of research before opting for them. 

You may luck out and find a skilled team for less money, which will allow you to invest more in other parts of the renovation. Newer teams also tend to use more cutting-edge tools and technology that can get you more quality and more innovation.

Job Complexity

If the apartment poses significant challenges, either through layout or something else, the contractor will add around 20-30% extra to your invoice. These challenges can involve restricted access for moving items, reinforcing structures when new layouts are introduced, low ceilings, extensive repairs, and many others.

Your contractor will inform you of these issues before the team starts working, so you’ll be made aware of what to expect, price-wise. 

Materials

To get the best value out of an apartment, you’ll have to renovate it and use materials that are as high-quality as the budget affords. The materials will usually be one of the largest percentages, and it’s recommended to do a combination of high-end ones with regular or cheap materials.

Kitchen appliances and surfaces will include some of the most expensive materials. Mid-range materials for countertops, cabinets, and appliances are a great way to blend both worlds, and you’ll also find yourself needing these for boilers, furnaces, and other elements of heating and cooling systems if you’re buying new ones for the renovation. 

Unforeseen Circumstances

Unforeseen circumstances tend to happen on every renovation or construction work. They are what the emergency fund we mentioned earlier is meant to cover in full without the extra stress and to avoid losing money instead of building toward a profit.

Unforeseen circumstances can include:

• Structural issues
• Plumbing and electric damage that requires replacements
• Water damage
• Mold and other embedded issues

If you can’t cover the costs of these when they happen, the renovation will have to be stopped until that’s possible. This will cause delays that can become more expensive than unforeseen issues. 

When you’re creating your budget for the project, try to factor in around 15% of it for these sorts of problems. This will help you be ready for them, and you won’t waste any money other than the funds that were already planned to be spent as part of the renovation. It’s best to eliminate these problems before the apartment is either sold or rented.

Costs per Room

Let’s break down the costs that rooms in the apartment will require. This is a good tool to assist you, both if you’re doing a full renovation of the apartment and if you’re just covering some of the rooms in it.

How Much Does an Apartment Kitchen Renovation Cost?

The cost of an apartment kitchen renovation will depend on how much you’re planning to change. This type of job will cost you on average $150 per square foot, or $23,556 in total. 

These figures will be affected by the scale of the project. You can opt for a minor remodel of the kitchen on your property for around $20,800. A minor remodel involves freshening up what’s already there. 

The flooring of the kitchen might be replaced, and the cabinets that can still be used will be spruced up with some paint. A backsplash might be added to enhance the design of the space.

A major remodel of an apartment kitchen will be priced at $60,000 or over, but you’ll see dramatic results. This process will usually involve a complete redesign of the kitchen layout. The previous kitchen will be gutted and then replaced. New appliances, counters, and cabinets will be installed, and a new style will give the kitchen new life and higher value.

If you’d like to invest in turning this into an upscale property to get the most profit out of it, you should consider an upscale renovation. This will cost you over $120,000 and will involve the installation of high-end appliances using materials that are the current trend in elegance and practicality. 

Look at the surrounding real estate when you decide your level of investment. Sometimes, getting a minor remodel can be the best choice.

You’ll also get impressive countertops, with quartz currently an even more popular choice than granite. If you’d like to save some funds on the kitchen remodel, you could try doing some of the labor instead of hiring professionals to do it. This should only be attempted if you have the knowledge to renovate properties.

Bathroom

The bathroom is ranked as one of the costliest areas to renovate, along with the kitchen. The price for a bathroom renovation can range from $5,957 to $14,833. The average remains at around $10,349. These prices can significantly increase if mid-range or high-end remodels are planned for the bathroom. 

You may be facing an invoice of up to $25,000 in those cases, but you’ll also get a higher value bathroom for the apartment. You can invest more in appliances and materials and less in professionals if there are duties you feel you know enough to do by yourself.

Bedroom

A complete bedroom renovation is usually priced between $7,000 and $8,000. If you’d rather calculate the price per covered area, bedrooms are around $100 per square foot. It will also benefit from new wiring and lighting, which will give the entire space a new, fresh feel. 

These prices may increase if you wish to get all-new furniture for this room. A bedroom with new beds, new wardrobes, or even the addition of a walk-in closet, will add to the costs but also to the value of the room and the entire apartment.

If you have more than one bedroom, split your plans and your budget as you see fit. For example, the master bedroom should get more of your focus, while the guest bedroom can get a new layout and accessories, but probably won’t be a candidate for as many features.

Living Room

The living room is a central area of the apartment that many potential buyers or tenants will pay some attention to during viewings. Despite its importance, this will be one of the cheaper rooms to renovate. It won’t need any tinkering with plumbing or pipes, and the cost usually stays between $6,705 and $7,823, with the average at $7,264.

If you’d like to add extra features, like the ever-popular fireplace, that will add an extra $2,000 to the bill. But it may be worth it, especially in colder climates, to ensure that maximum cozy atmosphere that attracts people to it and makes the apartment feel homey from the start. This will contribute to you quickly making a profit from the renovation.

Other Factors

When you’re planning the financial budget for an apartment renovation, make sure to include any paperwork that needs to be done, if any. You may need to get insurance to cover the time spent on the renovation and to make sure everyone is protected from any accidents or problems. 

The insurance you should get to cover the renovation will depend on the scale of the project. If it involves any structural reconstruction, you’ll have to get a comprehensive one, but you’ll usually not have to spend as much on insurance for an apartment as you will for a house. 

You should also check if there are any rules and regulations regarding the work you can do in the building. If you’re unaware of them and accidentally break them, you may be fined. 

We’ve mentioned before that electric and plumbing issues can cause unforeseen problems, but you need to factor in a check of the systems before the renovation starts. This will make sure that everything is up to code, or whether you’ll have to bring everything up to speed during the project. Make sure to seek the experts’ advice on this one.

Apartment Renovation Spending Best Practices

Apartment renovation can be a daunting prospect, even if you’ve been involved in it plenty of times before with other units. You should try to stick to the budget as much as possible and not get drawn into wanting to overdo it. There will always be a temptation to over-improve and over-upgrade, but that should be ignored. 

You should always keep an eye on the real estate market fluctuations in the area and adjust your project according to them. There is no need to spend more money on the renovation than you’ll be able to recover as profit when you sell or lease. Your apartment should be the best it can be in the area, but not at the entire expense of your finances.

You should also schedule the right time for the contractors to be on-site. Many apartment buildings have specific rules about noise. Get in touch with other people living in the building and any association that has the rights to it, and make sure that you have their permission to do what you have planned on the schedule you’re aiming to keep. This way, you can avoid fines and other issues.

Hiring Contractors

When you’re hiring your team of contractors, double-check their contracts and warranties to make sure there are no clauses that will leave you surprised at a later date. The contract stipulates precisely what the team will do and what it can’t do, so it’s a great point of communication. Being aware of the small print will keep you and them in high spirits.

If you want to play it as safe as you can, make sure to do as much research as possible on every professional you’ll need to hire, and then ask for references. It’s your right to have as many meetings with them as you like until you feel comfortable with them or decide to try out other options.

You should also make sure that all of the professionals you hire to work on-site bring the insurance they need to have on them at all times. That insurance is not your responsibility, but it must be carried by the team doing work on your apartment. This will include worker’s compensation, liability, and disability.

When you meet with your contractors before the work begins, make sure that you present them with an accurate schedule for the project. They will make their recommendations so that you can adjust it, but then the schedule that remains in place will be the one that’s followed. Try to do all the work on it before, and don’t alter it on the go whenever the whim strikes.

The schedule must be as comprehensive and clear as possible to make sure that everyone’s on the same page for the duration of the project. This avoids unnecessary delays and miscommunication issues, as well as budgetary tie-ups.

Contact Superior Commercial Solutions

An apartment renovation costs between $15,000 and $200,000. This depends on the size and scope of the project and the high-quality materials that will be used for it. 

To help with the latter, Superior Commercial Solutions has industry-leading experience in providing cabinets and quartz countertops to projects like multi-family and student housing, assisted living housing, and projects in hospitality. Superior Commercial Solutions supplies housing projects across the United States, and it even installs everything that you need. 

Contact us for tailored solutions to your apartment renovation needs!