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Amenities That Let You Raise the Rent

 

A new report by the National Apartment Association examines which amenities provide the most value to property owners based on resident interest, increased income and owner cost.

 

The data collected by NAA is compared to information from J Turner Research that explores what renters really want for amenities.

 

“For apartment owners and operators who have neither the capital nor even the demand for these over-the-top features, there are plenty of ways to increase their communities’ appeal through amenities, many of which are simple to implement and require little up-front investment,” explains NAA.

 

The Most Common Amenities Added to Aparments

 

  • Washer/Dryer in Unit

  • High=End Kitchen Appliances

  • Hardwood Floors

  • Lighting, Plumbing, Electrical Upgrades

  • Energy-Efficient Appliances

  • High-End Kitchen Countertops

  • Ceiling Fans

  • Cable TV

  • Garbage Disposal

  • Patio, Balcony, Personal Outdoor Space

 

Compared to J Turner Research, more than '…“ of renters are willing to pay more for hardwood floors, balcony, and/or granite countertops.

 

How much value to added amenities provide?

 

The report explores how much more rent an owner can expect to receive by investing in amenities for their residents.

 

Community Amenities Added Value

 

According to NAA research, “Pet-friendly amenities had the greatest impact on rent increases, and with a relatively low cost to implement, clearly o er the best bang for the buck.

 

Fitness centers, swimming pools, and common areas provide added value to rental properties but can be some of the most expensive amenities for owners to offer, especially if designing features from scratch.

 

In-Unit Amenities Added Value

 

  • Energy-E cient Appliances increased revenue by 16%

  • High-End Kitchen Appliances increased revenue by 16%

  • Washer/Dryer in Unit increased revenue by 15%

  • Hardwood Floors increased revenue by 12%

  • High-End Kitchen Countertops increased revenue by 11%

  • Lighting, Plumbing, Electrical Updates increased revenue by 9%

  • Ceiling Fans increased revenue by 6%

  • Patio, Balcony, Outdoor Space increased revenue by 6%

  • Garbage Disposal increased revenue by 5%

  • Cable TV increased revenue by 4%

 

Major Renovations

 

NAA analyzed data from Axiometrics to understand the impact major renovations play on the potential revenue for the rental industry.

 

“On average, occupancy rates in renovated properties increased by 0.55 percentage points in just three months, and an additional 1.15 percentage points six months after renovations were completed,” explains NAA in reference to Axiometrics findings.

 

How much are owners spending on renovations?

 

During the past five years, apartment owners have increased spending by an average of 13 percent annually, adjusted for inflation. As the apartment market landscape becomes more competitive and new product comes on line, owners are reinvesting profits to keep their properties attractive to prospective residents.

Conclusion

 

Major renovations have the most significant impact on rent increases; however, minor inunit upgrades like a washer and dryer and desired by residents and can provide immediate returns to owners.

 

About the Study

 

This NAA Research study included 43 unique amenities, added or upgraded from January 2014 to September 2016. The universe of survey responses totaled more than 100,000 units in 35 states.

 

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