So what's the silver bullet—the thing that every new tenant will be looking for this year? Is stainless steel still the leading trend? Granite countertops? Hardwood floors? It turns out when it comes to amenities, the more modern they are, the more attractive they are to prospective residents.
More bang for your client's buck
When the housing bubble burst last year, it opened up the supply of higher-end, luxury properties. “All these condos downtown are now luxury rentals,” says Nathan Brown, property manager and broker with Chicago-based Triview Property Management. Because of this, new renters have been clamoring for upgrades on their apartments.
“They are more likely to come in and say, ‘I want this, because I don't have it now,’” Brown says.
Brown adds that potential residents will often come into his office with a list of amenities they're hoping for—everything from a fitness room and doorman to a washer and dryer unit and hardwood floors. And lately, he's been surprised by how they've managed to get everything on that list.
“Clients are able to get a lot more for their money,” he said. “The going theme for 2009 is more bang for your buck.”
Vintage loses its luster
As new and modern properties come on the market, older “vintage” properties see their potential shrinking without updated interiors. Maurice Ortiz, the marketing director of Chicago-based agency, Apartment People, says the majority [of people] are looking for hardwood floors, stainless steel and granite. “In general, everyone is looking for a new or updated kitchen and bathroom. Not many people are looking for carpeting anymore,” he adds
Which is not to say people aren't interested in living in vintage buildings. But more often than not, that interest is solely directed at what's on the outside of the property. “People like a vintage exterior,” Ortiz said. “If there's a modern interior.”
The easiest way to show off that modern interior is to start with your kitchens and bathrooms. “Everyone looks at your kitchens and bathrooms first,” Ortiz said, so if you can't completely overhaul the apartment, those two rooms are the best places to start.
After that, Ortiz says the next logical step is to get rid of the carpet and install some hardwood floors. This can be expensive, but it can help add value to the property and attract more tenants in the long run.
“Hardwood floors are definitely more expensive,” he said, “but they're easier to maintain and they last longer [than carpeting].”
Make it look new
The secret to staying competitive in this recession is to recognize that people are looking to pay less for more. As the news keeps reporting home prices falling, more and more potential residents will be sniffing out deals on higher end amenities.
But before you break your own budget trying to keep up with the latest in luxury amenities, remember what will be most useful. A multi-unit building could become more attractive with an exercise room, but if it's a waste of space in a smaller building with three or four apartments.
A washer and dryer in the apartment is a huge draw for prospective tenants, Ortiz says. But they come at a steep cost. For those with a smaller budget, attractive amenities begin with the bathroom and kitchen. Even if it's not the latest appliances, starting small can be a big help.
“You don't have to put in granite and stainless,” Ortiz said, “but at least make it look remodeled.”
Overall, both Ortiz and Brown said that people tend to think positively of a place if they're aware of any recent improvements.
“[People] are looking at the overall feel of the place,” Brown said. “Even if it only feels like it's been recently redone. Sometimes even that is enough.”
What to do next
In order to compete, it is necessary to keep up with the current and popular trends in amenities. You can find out more through classes with the National Property Management Association (NPMA) or any local property management association. But don't forget your most valuable resource—your current and potential tenants. When showing the property for potential residents, have them fill out a quick survey beforehand about what kind of amenities they are most attracted too. You can also hand out a similar survey to current residents when it comes time to renew their leases.
The bottom line is this: The more modern the amenities and the newer the property looks, the easier it is to find people who want to call the place their home.
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