According to the US Census Bureau, apartment rentals are at a 50 year high with young adults doing a majority of the renting. To attract the highest quality tenants, multi-family properties need to offer amenities that people will pay up for. Here are the top five amenities for 2019 that have the best return on investment (ROI).
Fitness remains the top apartment amenity. Since it is one of the most popular amenities out there, it also has one of the largest ROIs. The National Apartment Association has reported that 46% of tenants are willing to pay more to live in a building that includes fitness facilities.
The rent premium on a fitness center averages between $67 and $11; with a median cost of $28,000 to install. These numbers are going to be affected by the size of the property, where the property is located, and the type of equipment purchased.
That aside, CEOs of large apartment developments have reported installing whole Pelton bike rooms to bare bones cross fit studios. A popular and inexpensive add-on to a fitness area is a chill-out area, like meditation rooms or yoga studios. If that was not enough one CEO claims to be testing dog treadmills in one building.
Pets, Pets, Pets!
People love their pets, and they are looking for pet-focused amenities. These amenities include dog parks, grooming areas, walking trails, daycare, pet spas, and training services. The median cost to install a pet-friendly area is $7,000.
Installing highly sought after pet-friendly areas will allow you to increase your pet fees and charge additional pet rent. Some buildings charge up to a $500 nonrefundable fee for pets in addition to a $50 per month pet rent.
The 2017 Virtual Vocations Year-End Report says that approximately 25% of the US telecommutes at least some of the time. People in these positions desire Multi-family properties that offer working space to telecommuters. Many people find working outside of their home to be distraction free whether that be at the office or a temporary office.
There are no reliable figures for ROI, but with the increase in shared work spaces such as WeWork the return on the median cost of $13,500 to install an office space should be worth the effort. Something like this could even be put into a basement since no windows are required.
Package delivery lockers are a big thing that new tenants are asking for. People love their Amazon deliveries. A package locker can cost between $10,000 and $20,000 to have installed.
There is very little upkeep and comes with a rent premium between $10 and $40. Some locker services offer free lockers for a monthly fee.
Outdoor Community Living
A recent aprtments.com survey listed this as one of the top new amenities for multi-family residences. There is some dispute on the overall ROI when compared to the increase in insurance rates and the cost to install. Your ROI for a project like this will depend on the size of your property and where you are installing the amenity.
People are looking for areas to share gardens, BBQs, gaze at the city lights, or have a fire with neighbors. Something like this can be as simple or luxurious as you want to make it.
If you are looking to beef up your amenity spaces to attract more high-quality tenants start with your number one amenity space, your gym. Opti-fit can help you determine what new equipment to bring in, the possibility of creating more outdoor exercise space for people and their pets, and work within your budget and timeframe. Check out the Opti-fit website or email us at firstname.lastname@example.org to find out more.