7 Upgrades That Can Add Value to Your Multifamily Property

You hear the term Value Add as an investment strategy or business model, but how is the value really being created? 

Selecting the right areas to add value can have a significant impact in terms of market appreciation, rent growth, and attracting quality tenants.

Here are 7 Upgrades That Can Add Value to Your Multifamily Property:

1. Interior Improvements: Installing new LVP flooring, a fresh coat of paint, cabinets and countertops, bathroom upgrades, install new appliances such as dishwashers or split AC units will get you the most bang for your buck.
2. Upgrade Common Areas: Refresh the lobby and common area recreational space, update the building and unit entryways and walkways.  Construct additional common spaces for tenants to gather and possibly use as “flex space.” Include storage or locker facilities for large package deliveries.
3. Improve Curb Appeal: A fresh coat of paint goes a long way, look at refreshing landscaping, upgrading green spaces, resurfacing parking areas, adding seating or BBQ area, and improve security through fencing and lighting. 
4. Practice Sustainability: Most older properties weren’t built with sustainability in mind.  Replace older lighting with energy efficient LED bulbs.  Install low flush toilets.  Upgrade windows with better insulation.  Install solar panels on the roof of the building or parking areas.  Implement a recycling program.
5. Be Pet Friendly: Investors can reduce risks of allowing pets by having non-refundable pet deposits or charging cleaning fees or including pet rent.  Washing and grooming stations as well as a pet park are great amenities and will attract a broader group of tenants.
6. Embrace Technology: Utilize technology to better the tenant’s experience. Owners can install keyless entry systems, smart home features, improved WiFi capacity, and use owner/tenant communication applications.
7. High End Amenities: Initially, you think of pools, jacuzzis, and work out rooms, but adding dry cleaning services, auto detailing, bulky mail storage, and a theatre room will really attract the top tenants in the market.

Consider these improvements when you’re looking to force appreciation and add value to your Hawaii multifamily property, you’ll definitely see the return on investment!

Kynan Pang, CCIM

RB-23513

808-225-8776

[email protected]

hawaiimultifamilyadvisor.com