People are moving to New York City to be closer to work. Since a good number of the jobs are contractual, most are looking for apartments. This has given rise to local commercial real estate investors who want to acquire multi-unit properties and fix them up for the new wave of residents, and those investors who want to renovate existing properties to attract tenants and increase their bottom line. So how much of your budget should go into renovations, and what should you consider adding to your multi-unit residential properties?
Tenants Are Looking for Quality and Amenities
Commercial real estate investors who try to cut corners or use bottom-shelf materials are not going to bring in the tenants or revenue they want. Renters are smarter, due to the accessibility of DIY shows and networks like HGTV. If more is put into the renovation of an apartment, it will attract more tenants, and they will be able to justify the rent. This does not mean you need to blow your budget on fixtures and materials, but certainly keep aesthetics in mind when designing the units to make them not only livable, but so tenant would want to show off the living space to friends and family.
Many multi-unit rentals in NYC are offering amenities in addition to higher-end living spaces. Gyms, shared office space, libraries, artist studios, and more are but a few of the things property owners can add to their renovations to make their apartments more attractive to potential tenants. The truth is people are looking for a place that offers more than just an apartment, and their jobs allow them to budget for higher rent provided there are some amenities included.
Location Remains a Big Factor
When deciding on amenities, it helps to see what’s available in the neighborhood, and what similar apartments are offering for the rent. As more people split their jobs between being in the office and remote work, having a section of an apartment building dedicated for shared office space is a big plus. An exercise room is nice, but may not make sense if there’s a gym right around the corner. Artist studios are niche and appeal to specific clientele. Explore your neighborhood. Look at competing apartments. Get a better bead on the type of tenants you want, and what they are looking for in an apartment. It never hurts to spend a little more if it means you can increase your revenue and retain tenants.
Express Capital Financing specializes in solutions tailored for the NYC commercial property market. From acquisitions to renovations, construction, and even refinancing options, Express Capital Financing goes above and beyond traditional lending channels. Contact our offices today to learn more.