Property investors have much to consider when attracting tenants or increasing property value. Adding amenities is one way many are getting ahead in real estate today. The suitable offerings can give a property a competitive edge, improve tenant retention, and increase revenue.
8 Reasons Adding Amenities to Your Property Is So Important
1. Competitive Edge
When someone is comparison shopping and two properties are very similar, amenities will tip them in one direction. A property with amenities people care about or that are hard to find will always make a listing stand out. Phrases like “swimming pool” or “dog park” catch the eye of people browsing an endless list of properties. These also make a property memorable as they continue their search.
This competitive edge will increase the rent tenants are willing to pay. It will also attract more tenants. This can lower vacancy rants and increase the overall value of the property.
2. Property Value
Real estate investors can widely agree that adding a second bathroom to a property has a substantial return on investment. Adding amenities like swimming pools, gyms, event spaces, or a security system is the same. Tenants are willing to pay for the convenience of a gym in their building. And because of this, potential buyers will pay more for this value-add.
This is especially true if your amenities make use of previously waste space. For example, an unused part of a parking lot becomes a ride-share parking area. Or, an unused room in the main building becomes a coworking and rentable conference room. These features elevate a space and add value to the property long term.
Happy tenants renew their leases. If the amenities packages they’re getting from their current rental truly add value to their life, they will value that. They don’t want to go through the hassle of moving only to be disappointed.
For example, amenities around pets are often hard to find. Meanwhile, people love their pets and are willing to make housing or work decisions based on them. Officer workers love a job where they can bring their pets to the office’s doggy daycare. Renters love a property with a community dog park.
4. Create a Community
A lot of amenities are socially based. For example, bringing pets to daycare, hanging out at the gym, or in a newly renovated clubhouse. Potential tenants are more attracted to a friendly property with a sense of community. Existing tenants are less likely to leave one.
A sense of community also gives them greater pride in the property. This can lead to them taking better care of the property themselves. They’re more likely to report security events if they care about the community immediately.
Words like sustainable and eco-friendly stand out in listings. Many eco-conscious renters love seeing a property with a recycling program, composting program, or energy-efficient appliances. This can also reduce operating costs and utilities for the tenants themselves.
6. Build a Property Management Brand
The more amenities in your properties, the better your brand looks. A lot of amenities are viewed as luxury add-ons. These build a company’s reputation for providing the best. When a company has a good reputation already, its future properties benefit and can command higher prices.
7. Increased Revenue
Property owners can command a higher monthly rent when they have amenities tenants are willing to pay for. There are also opportunities to charge extra for additional, optional amenities that appeal to a set crowd.
For example, many people will pay more monthly for a highly-prized covered parking space. Some properties use their business center or clubhouse as an event space that can be rented out. These represent opportunities for additional revenue and intelligent use of space.
5 Examples of Great Real Estate Amenities You Can Offer
1. Fitness Rooms
Traditionally, properties have offered a fitness room with some workout machines. This kind of gym space is still attractive. Many properties are doing their best to get creative and build a little extra edge. For investors who want to go further, consider a yoga space. This area can have a cleared floor, mirrors, and available mats.
Other options to level up include offering fitness classes, building an outdoor track for runners, or creating a meditation space. This last option will need to be a quiet space, preferably soundproofed. It doesn’t have to be very large, so this can be great for an odd space.
2. Bike Storage and Covered Parking
Technically, this point is two items, but they’re both ways to renovate a parking lot and add amenities. An area where tenants can safely lock up their bikes can be very attractive. It’s also helpful if this area is well-lit.
Covered parking spaces are coveted, especially in urban areas. In Texas, drivers love the opportunity to protect their paint jobs from the sun. In areas where it snows more often, not having to clear off a car is a big selling point. Covered spaces can be charged for and represent additional income for a property owner as well.
3. Pet Amenities
A doggy daycare, a dog park, a dog run, or a dog wash station are all major pet amenities. Keeping dog treats on the lobby’s front desk is another way to add a little sense of something extra. The reality here is that small touches can go a long way in attracting people willing to pay more for certain amenities. The more a property pushes the pet-friendly amenities package, the more it will appeal to that audience.
4. Event Space
This can be a business center, a nice clubhouse space, or even a vacant part of a parking lot. If using a parking lot, a property owner can invite food trucks to hold events. The parking lot can also be used with tents for small local art exhibits or for musicians to play. Don’t underestimate what can be offered in any space a property has.
Community building events indoors at the clubhouse can be as simple as a movie or trivia night. These can also be coworking spaces. Another idea is to let local speakers hold events that benefit your tenants.
5. Game Areas
Outside, this can be a volleyball court, basketball court, or bocce ball space. Inside, this could be a pool table, ping pong table, or air hockey table. Alternatively, putting up a bookshelf full of board games and a few tables does the job. This creates an excellent area for people to play games in a community space. It means they don’t have to find space for that in their rental.
These gaming options vary a lot in cost and scope, which is a great example of something to consider. What all of these gaming examples do is take advantage of the space and budget you have. It’s all about finding new ways of adding amenities and appeal to your property.
Investing in amenities represents a renovation opportunity that can truly add value to a property. It’s a great way to attract new tenants and keep current ones happy. It can also be a great way to use better space on the property that is currently not adding any value. To learn more about renovating your space contact Sayan Renovations & Construction today.