How To Add Value With Amenities For Apartments
We are halfway through our courtyard renovation at The Henry at Liberty Hills, our 228-unit asset in Houston, TX. We are adding new amenities that will greatly enhance the property and below we break it down and show how we can increase the overall value of the property itself and how you can do the same.
What used to be just a patch of grass is being turned into a multi-purpose amenity space that we are adding:
Dog park with small & large breed sections
Amazing outdoor fire pit w/lounge chairs
Outdoor kitchen with multiple cooktops & fun hanging bar seating
Patio seating and tables
Hammocks swinging under trees for residents to relax
Not only is this going to make this asset more appealing to future residents & increase current resident retention and satisfaction, but we will also be able to charge amenity fees and view premiums to increase our bottom line and pass the benefit along to our investors.
Below are some before pictures of the space that we are renovating, and as you can see it is a great space, but highly underutilized. This courtyard is central to the entire community, but sadly didn’t have anything to offer residents.
All of that is changing though! Check out some of the progress pictures below. The space is starting to transform and can hardly believe it was just grass before.
What once served as just open green space is being transformed into 5 new amenities!
Some quick math to illustrate the benefits: if we charge $20/unit for an amenity fee and we are presently 98% occupied at this asset, that translates to an increase of $4,460/month or $53,520/year. If you divide that by a market cap rate of 4%, that equals an increase in asset value by $1.33M. This doesn't even account for the view premiums on 36 units surrounding the courtyard too!
If you own a property, you may want to look into adding additional amenities/features that will set your property apart from your competitors. When tenants are exploring their options, they are not only very aware of the out of pocket costs month to month, but also weighing what all those costs get them.
By creating spaces designed to improve their quality of life, you can greatly increase your chances as a landlord of landing future tenants.
