Intelligent rehabs to luxury multi-dwelling units can lead to rent increases of 10 to 30 percent, experts say. But which upgrades offer the most value?
As with single-family home rehabs, the value of upgrading varies by region, but some improvements are smart choices in any city. Consider these upgrades to entice buyers and fill units faster at higher rent prices.
1. Incorporate LED Lighting in Common Areas and Units
Sleek, modern pendant lights in finishes that match other hardware in the unit create a cohesive look. The latest trend is smart lighting and tunable white LEDs, which allow residents to adjust the color temperature of the bulb for a warm or cool tone depending on the time of day, their mood, or their activities.
Also consider adding color-changing LED tubes to give a party room, fitness center, or any gathering space modern flair.
2. Welcome Guests with Wood or Tile Flooring
Improvements in common areas will create immediate positive responses in luxury high-rise MDUs. Invest in high-quality hardwood flooring, which will create a trendy look today but also stand the test of time.
Large ceramic or slate tile flooring also has several benefits: It is easy to clean, neutral enough to match any décor, and offers a timeless, classic look in any rental unit or common area.
3. Give Your Building Curb Appeal with Window Upgrades
Remember to include outdoor improvements, such as new windows, which will look great from the inside and out. If your budget does not permit upgrading all the windows in a building, focus on ground-floor common areas first. Upgrading to energy-efficient windows can lower your operating costs over time, and a “green building” is a characteristic eco-savvy tenants seek in luxury apartments.
4. Stock Units with the Latest in Smart Technology
The home of the future is voice-controlled, smart, and user-friendly. Intelligent LED lighting can be controlled via Amazon Alexa or Google Home units, which can double as a distributed sound system to fill the apartment with music.
Stand-alone smart technology such as a Ring doorbell adds a sense of security. And with Amazon’s recent purchase of the smart doorbell manufacturer, it integrates seamlessly with Alexa for voice activation.
Bonus Tip: Take Advantage of New Tax Laws by Writing Off These Improvements
Under the new tax law, you can deduct the full amount of capital improvements to rental properties in the first year, rather than depreciating those costs over time. For that reason, it might make sense to choose at least one item on this list to upgrade each year—or do it all at once for a generous write-off.
Remember, luxury tenants expect the best and have the money to pay for it. Pay attention to both the details and the big picture to create a luxury MDU your tenants will love to come home to.
Let 5 Arch Help You Aim Higher with Luxury High-Rise Rentals: Get started now: Borrow Better today!