The best apartment amenities to add in 2019 and 2020 provide long-term value for minimal investment. Looking at industry trends and consumer desires help guide apartment managers in competitive neighborhoods like Los Angeles and Inglewood to the right features to cost-effectively add to their apartments.
Many of these features are simple, like energy-efficient appliances, dog parks, and smart thermostats, but they go a long way towards making a living space more desirable and increasing property value overall.
The Three Best Apartment Amenities to Add in 2019 – 2020
About 43% of U.S. renters live in multi-family buildings because of the convenience and community they provide. These dwellings are particularly popular in urban areas, where space is limited and rent is high. However, many apartment managers recognize the potential and have chosen to target the multi-family market. This creates competition which can lead to low occupancy or discounted rental rates. Apartment managers must be willing to incentivize occupants, and you want cost-effective ways to do this. Here are three common amenity upgrades that boost commercial long-term value, profitability, and tenant retention.
#1: Energy Efficient Appliances and Fixtures
There are a lot of energy-saving options for refrigerators, dishwashers, washers, dryers, and stoves that save on utility bills and have a significantly longer lifespan than their non-efficient counterparts. Using products listed on the U.S. Environmental Protection Agency’s Energy Star program can save up to 30% on annual energy costs. Even smaller upgrades, like low flow toilets or energy-efficient light bulbs, can help reduce overall costs and make spaces more appealing to renters going green.
The benefits of energy-efficient appliances don’t stop at cost savings. These upgrades appeal to a new breed of consumers who are more concerned about their environmental impact.
About 85% of millennials—one of the largest generations of renters—believes that it’s extremely important that all types of companies implement programs to improve the environment. For landlords, that means creating sustainable housing options that reduce energy consumption.
#2: Dog Parks/Pet Runs
Almost 40% of houses in the U.S. have one or more dogs, which is the highest estimated ownership since organizations started tracking these figures in the 1980s. There’s a number of reasons pet ownership is more popular now than it’s ever been, but the largest is that individuals are choosing to stay single longer. As many people wait until they’re older to get married and have children, these pets provide companionship that individuals may be lacking.
The rate of pet ownership isn’t the only thing that’s changed. The way people treat their pets has made a major shift. People are caring for their pets more like family members, as they enroll them in doggy daycare, bring them to pet-focused restaurants, and take part in pet playdates. All of this has grown the pet supply and services industry to a $68 billion market.
Dog parks and runs are excellent options, as they require minimal investment but pay major dividends.
Offering pet-friendly accommodations for tenants in urban or downtown is a good way to ensure that you cater to those who want the best for their pets. Dog parks and runs are excellent options, as they require minimal investment but pay major dividends. Dog parks add many benefits to a property that increases the likelihood that individuals will want to rent in those spaces. They’re especially popular in urban areas where young professionals may not have a space to easily walk their dogs.
#3: Smart Thermostats
Smart thermostats have become much more affordable in recent years, with some of the best models costing under $200. Aside from offering tech upgrades with better energy savings and effective in-home climate monitoring, they also have some features which allow for better energy tracking and conservation. In one study of Nest thermostats—one of several smart thermostat brands—it was found that using these devices reduced heating and cooling expenses by almost 20%.
Smart devices are becoming a major draw for renters who want to be able to monitor their homes remotely and be more responsible for their energy use.
The U.S. leads the world when it comes to smart home product use, as the industry brought in an estimated $5 billion in 2018. Despite that, market penetration is only at 15%, meaning there is room to grow and vast potential to increase rental revenue by adopting smart technology.
Maintaining Long-Term Property Value
One crucial part of any amenity—whether the landlord is considering a high-end water feature or a simple repainting—is how it will impact the long-term value of a property. Maintenance is essential, as some amenities can create long-term damage if they’re not properly cared for.
Anyone considering adding an amenity should discuss their options with a redevelopment industry expert who understands the true long-term costs and added value that certain amenities provide. Some of the best apartment amenities for 2019 and 2020 require very little upfront costs when compared to their return on investment. Experts in such upgrades can guide apartment managers in finding the best possible options for their long-term tenant retention.