411homerepair.com

Latest Articles

Five Common Household Pests and How to Get Rid of Them

We all want to live a comfortable and relaxing life at home. This can often be made difficult if you are dealing with a pest problem or...

on Jan 19, 2019

Gas Water Heater Repairs

If you have a gas water heater and are not getting the hot water that you want, there are a few simple repairs that you can try. You should try...

on Jan 15, 2019

5 Tips To Help You Win A Foreclosure Auction

Auctions are chaotic – even if you’re an experienced pro. Foreclosure auctions are a crazy affair, full of homeowners trying to snag...

on Jan 14, 2019

These Rules of Bedroom Design Were Made to Be Broken

You want a beautifully decorated home, but when it comes to your bedroom, you should consider functionality over fashion. A bedroom can be...

on Jan 7, 2019

Maximizing ROI by Rehabbing Multifamily Properties

by Guest on Jun 10, 2017

Projects Proven to Generate Returns

There are a number of rehab projects that multifamily investors typically acknowledge as time-tested solid investments because they are proven to produce a substantial increase in rent. 

That substantial increase in rent can range from 10 to 30 percent from many multifamily renovation projects.  Proforma rents are not used for multifamily loans normally by underwriting, unless the unit is vacant and uninhabitable in its current condition. 
Having said that, the following are the most common types of rehab owners utilize to raise rents and subsequently the property’s value.

Exterior Improvements

The curb appeal of a building can be an important factor on a prospective tenant's decision to become your tenant.  Like all residences, the first impression is vital.

Green Rehab Projects

Shade. Arrange some type of overhang, tree or awning to shade all south-facing windows (within 15-degrees east or west of the southside of building) during the summer months. This measure reduces the need for air conditioning thereby saving energy, and increasing the renter's comfort.

Insulate the hot water pipes, and install a water circulator on a timer.  The effect is your tenants get instant hot water, and the hot water heater operates at a slightly lower temperature, extending its life. 

Install energy-efficient windows.  These green-friendly windows help to minimize the fading of interior furnishings by shutting out ultraviolet radiation.  Moreover, insulated dual-pane windows decrease condensation, water damage and possible fungus and mold growth.

Interior Improvements

Flooring: Replacing standard carpet with ceramic, natural linoleum, or wood flooring offers numerous advantages.  The unit's appearance will look more modern, it's easier and less expensive to maintain, it reduces replacement costs, increases durability. 

Owners report that replacing carpeting with vinyl, tile, or wood flooring nine times out of ten produces the highest return on their investment.

An additional benefit of flooring that is non-carpeted is it will help prevent potentially toxic materials like formaldehyde, a human carcinogen. Another good reason to remove carpeting is because it is ideal for dust mites, bacteria, and other allergy-causing organisms. 

Countertops: When replacing a countertop, common choices are granite, stone, quartz, laminate, and good ol' formica in the kitchen and bathroom. Granite counters are usually added to units in better neighborhoods and these renters expect mid- to high-quality counters.

   Amenities: Adding a washer and dryer (or hookups) to a unit will increase its value because it is a convenience for the tenant because they don't have to go to a laundromat or friend’s home. An in-unit washer/dryer is similar to flooring that is free of carpet, it’s an amenity that help tenant’s lives become easier.  The expected increase per unit is $50 to $100 more in rent per month. 

If you decide to buy a washer and dryer for your units, make sure they are Energy Star–qualified with a modified energy factor (MEF) of at least 1.72 and a maximum water factor of 8.0.  According to the Environmental Protection Agency, Energy Star washing machines use 50 percent less energy in contrast to conventional washers. 

Cooling. Purchase Energy Star ceiling fans for installation in all bedrooms and living rooms. Ceiling fans improve comfort and reduce heating and cooling costs.   Units can be easily retrofitted with ceiling fans upon turn-over or if presently occupied.

If you provide the refrigerator for the tenant and the building is in a very desirable neighborhood, you may want to look into Stainless Steel energy-star appliances as it is an attractive amenity for many prospective renters and could receive higher rent than a unit with your standard looking refrigerator.

These improvements and rehabs for an apartment building are some of the best choices to make if you want to maximize your return on investment.

Author

Guest

Guest

Sponsored Articles

Random Articles

4 Tips for Decorating your Studio Apartment

If you live in a small to medium-sized living space, you may need to get creative with decorating. It’s not uncommon to pay a great deal for a...

Interior Design / Decor

Spray Painting - Can You DIY Or Do You Get The Professionals In?

The advantage of spray painting is the sheer speed at which you can do it. A room that would usually take a weekend to paint can be done in less...

Painting / Wallpaper

How to Protect Your Furniture from Sun Damage

Having large windows that let in a lot of sunlight can be nice. It can feel good enjoying the natural light when you are indoors. While it may feel...

Bedroom / Furnishings

Where Can You Find Bargain Beds?

Nowadays there are sales, discounts and special deals that are available for every product that you want to buy from pencils to airplanes. It is...

Bedroom / Furnishings

How to Incorporate Multiple Shades of Wood In One Room

One of the challenges that some homeowners can struggle with when it comes to design, is how to coordinate everything they have in a room so that...

Interior Design / Decor

Actions

Contact Us | Submit Article | 411homerepair © 2019