Rationale for Multifamily Property Renovations

Multifamily properties provide independent residential units to individuals within a building or complex. Such complexes are comprised of one or more buildings. The apartment is the most common form of multifamily housing. However, retirement homes, condominiums and even residential treatment centers are categorized under similar construction. Given the state of our economy, the demand for these properties is on the rise due to their affordability. To meet this demand, property owners will need to maintain and even renovate their properties.

Investors in multifamily properties need to make smart decisions when initiating renovation projects. If you are a property owner, keep in mind that your residential and commercial properties can be a significant source of cash generation. Multifamily renovations can give you a much better chance of getting more value out of your investment by generating consistent cash flow.

Hence, it is always good to create a nice exterior and furnish residential units with quality appliances. In addition, consider fresh paint on all of your properties.

How to Decide on Multifamily Property Renovation

If you haven’t renovated your property in more than 5 years, the you are likely losing value. When considering a renovation, consider these basic questions:

1. What renovations are most critical to maintain or increase the value of your property and monthly rents?
2. What is the expected cost of renovation based on quotes from top contractors?
3. What is the ROI period? How long will it take to recover the cost of renovation through increased rents?

With multifamily renovations, if you can’t recover the cost within several years, then the renovation plan needs to be reevaluated. Speak with a local multifamily renovation company to plan out your renovations project and ROI timeline.