Which interior renovations could yield the highest ROI for multifamily investors?

Dana on June 13, 2022

Which interior renovations could yield the highest ROI for multifamily investors?

 

When multifamily investors purchase an investment property, they can increase their ROI through smart renovations by updating interior elements that are beyond their useful life.

The reason why ROI is such a deciding factor in multifamily renovations is that remodelling is the only method of investing where the investor gains two means of value: they receive higher property and future cash flow appreciation; and they get to attract tenants with higher purchasing power and enjoy a better renter retention rate by greatly improving the quality of life of their current tenants.

When investors choose value-added projects, they should consider interesting opportunities that have the winning combination of the highest ROI, lowest costs, and time required to complete the renovation work.

Which interior renovations could get multifamily investors the biggest ROI?

Today, kitchens are not just places to cook meals; they are central social spots for family and friend gatherings! Therefore, a nice-looking kitchen is one of the top requirements for renters and offers the best return on investment. Some of the most valuable kitchen improvements include modernizing cabinets; installing new countertops; and updating the sink, faucets, and flooring.

Tenants spend a lot of time not only in their kitchens but in their bathrooms as well, and any upgrades in these areas will go a long way towards commanding a premium on the rent.

Just like kitchens, people like their bathrooms to look clean and modern. New bathrooms give that added assurance, which is important to current and future potential renters, so bathroom upgrades will help multifamily investors achieve top rental income.

Kitchen and bathroom remodelling, in-room washers and dryers, and amenity upgrades relevant to the property location and target group preferences may provide the best return on investment for real estate investors.Offering a washer/dryer combo in a building without laundry facilities will be a major attraction to tenants.

Small décor adjustments can radically transform a home and boost its value. Replacing standard carpet with tile, vinyl, or wood flooring gives the space not only a cleaner and more modern look, but it saves time and money for the tenant as it takes less time and money for maintenance. In this respect, replacing worn and antiquated hardware, such as doorknobs and cabinet handles, is one of the simplest decor changes. Replace trim, baseboards, and light fixtures, among other things, to add value to your design.

Finally, freshly painted walls can completely change the perception of an apartment. There is nothing better than a fresh coat of paint to showcase the new, fresh and inviting look of an apartment and increase its appeal.

Rental property ROI is dependent on a variety of factors, including location, building curb appeal, tenant purchasing power, and more.

Multifamily property rehabs are potentially lucrative opportunities for patient investors. One key factor in the success of such ventures is having the right partner in the renovation process. Considering that the selection of the wrong general contractor may lead to delays, additional expenses, and loss-to-lease risk, multifamily investors should pay special attention to selecting a nationwide general contractor with a strong track record that can execute the entire process from start to finish and deliver the agreed KPIs.

 

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Please contact us to learn how we can best help you to turn your next investment project into a success.

Email: [email protected]

Telephone: (954) 570-0300

Address: 850 SE 7th Street, Deerfield Beach FL 33441

 

About Adivo Construction

We are a national general contractor with over 50 years of combined construction expertise specializing in the value-add improvements of apartment communities.

Our mission is to assist our clients in finding the right balance between capital expenditure and appreciation potential by designing and executing customized renovation programs that are focused on increasing cash flow return and overall return on investment.

We have completed over 100 repositioning projects for publicly traded and privately held domestic and foreign companies in states such as Florida, Texas, Kentucky, Oklahoma, Georgia, South Carolina, Utah, North Carolina, Tennessee, Indiana, Michigan, Missouri, Arkansas, Ohio, Arizona, Nebraska, and Kansas.

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