Whether it’s to help pay for property maintenance or simply to increase profits, you’ve decided it’s time to raise rental prices. The problem is, you don’t have a lot of cash on hand to make major improvements or add shiny new amenities like a snazzy fitness center or a shared workspace. What’s more, you’re worried that, with the coronavirus pandemic and high unemployment, tenants might balk at higher rents.
There are plenty of inexpensive ways, however, to update older apartments for more rent. Now more than ever, tenants also want to know they’re spending their money on living space with well-thought-out touches that make their apartment feel like home.
According to Zillow, nearly half of today’s renters, or 49%, are millennials ages 25 to 39. Renters are increasingly seeing their home as a place to recharge, says a separate 2020 report on apartment resident preferences, and that’s especially true for younger renters.
As you mull over how to update your older apartments to make them feel more like home and then raise rents, consider these top four cost-effective strategies:
- Add a fresh coat of paint. Repainting the walls in your older units to get rid of accumulated dirt and scuff marks can completely change the space, giving it a more modern and updated feel. To keep costs under control, buy paint in bulk and try to negotiate a discount. Focus on neutral colors like shades of greys, beiges, and whites because they appeal to more people. You might even choose to invest in eco-friendly paint, which you can tout with your younger renters. A Nielsen report found consumers are willing to pay extra for sustainability, and that’s especially true for millennials, with 73% of millennials saying they’d pay more for sustainable goods.
- Install new cabinets and doors. You may have old cabinets in your kitchens, but swapping out only the cabinet doors and fixtures will go a long way to giving the space a fresh look without breaking the bank. Apartment front doors also tend to suffer a good deal of damage over the years, but most owners simply paint over the wear and tear. Adding new front doors gives an immediate good first impression when a potential renter enters an apartment, and it can be done for a relatively low price.
- Add backsplashes in the kitchen. For years, kitchen backsplashes were merely functional and much smaller than what you see in today’s modern kitchens. In the mid-20th century, designers started to see backsplashes as a design element. Now, they’re taller and more elaborate, and the right backsplash can add a touch of elegance to a kitchen. When you’re choosing a backsplash, pick a material and color that’s classic and timeless like white subway tile. Otherwise, you run the risk of dating your space.
- Increase storage space. Storage space is critical for renters. Most say it’s the number three amenity they want in a property after an affordable rent and nice appliances. Simple and cheap ways to add storage space include adding hooks in bathrooms and entryways and shelving in pantries. Another great and inexpensive way is to upgrade your closets. Closet space in apartment buildings hasn’t changed much in 50 years, it’s been neglected. Most closets in older buildings are still dark and dingy with a flimsy wooden bar and wire shelving. Yet renters want a modern, highly functional closet space. One study found that nearly half of renters would pay at least $75 more a month for a bigger closet. It’s possible to completely recreate your closets and increase their storage capacity by 50% without spending a lot of money.
At CLOZZITS, our upscale, easy-to-install custom closet system, which we make ourselves with the best materials, does just that. After installing CLOZZITS, our customers report they’ve seen a rent increase of 2-5% on average and they’re on track for an ROI of up to 37% or more.
Calculate your ROI right now with our ROI calculator below and estimate the profit on your investment. We will send you the results directly by email.
