25 Nov The Value of Closet Renovation For Multifamily Housing Owners
If you own or manage a multi-family housing unit, you’re always searching for ways to decrease your vacancies and boost your cash flow.
It’s hard to know what potential tenants will value most. Should you upgrade your AC unit? Get a better internet provider? Offer more amenities?
While there’s no single solution for increasing the value of your apartment units, we’re willing to bet you’ve overlooked one option: your closet.
It’s rarely the first thought on anyone’s mind when discussing apartment renovation, but storage space is a worthwhile investment that can make your housing more desirable in a competitive market.
Why are closets so important?
Closets aren’t the first thing people generally look for when they’re searching for an apartment. They’re going to prioritize a proper kitchen, bedrooms, electricity, heating, and the works.
But if you’re looking for the luxury detail that will put your property ahead of the rest, consider renovating the closets.
This is an overlooked feature that modern tenants are valuing more and more, especially in larger cities with tight living spaces. People express themselves through what they wear, and the closet provides us with space to comfortably choose our daily looks.
If you’re a multi-family housing owner, an attractive and well-planned closet might be the difference between a tenant signing a lease or deciding to go elsewhere.
How can closets bring in revenue?
A survey conducted by Multifamily Executive that sourced over 84,000 renters around the country asked questions about their wants and needs when it came to housing.
Almost 50% of respondents claimed that they would gladly pay an additional $75 on their rent for a large closet, with “large” constituted as 10 feet by 6 feet. Most of these respondents were either Millenials or Generation X.
For multi-family housing owners, this has a lot of implications for the future. With younger demographics willing to pay more for closet space, you can make more money now and into the future if you invest in this space. Think of what $75 in monthly rent will do for your cash flow if you multiply it across all your tenants.
What should I do to renovate my closet?
You’ve now seen that renovating your closets can lead to increased unit profits and are interested in what that would look like for your property.
There’s no “one size fits all” solution, but there are plenty of ways to increase the value of your closets. Contact CLOZZITS today to see how we can help you optimize your storage space. For more insights on the closet renovation, visit our blog.