There is a strong emphasis today on enhancing renters’ daily lives with convenient apartment amenities. Such amenities range from on-site concierge services and pet spas to helping tenants unwind with rooftop yoga classes, studio space and coffee bars.
However, as customer-centric amenities have become the new norm, the reality is that many apartment owners and landlords nationwide are finding that delivering – and managing – the right combination of trending amenities is more challenging (and expensive) than imagined.
According to a recent Multifamily Executive article, in numerous cases, apartment building amenity spaces tend to be unutilized. Yet, these amenities can be extremely costly. In New York City, a typical exercise class might cost tenants as much as $200 per session. Apartment owners face additional class-related costs like insurance, maintenance and the workers required to manage such amenities, which puts further strain on existing resources.
The National Apartment Association (NAA) shared the results of a research study identifying top amenities and ranked them based on their impact on revenue.
Here are some highlights:
- When it comes to individual apartments, owners commonly upgraded units with washers and dryers, followed by hardwood floors and high-end kitchen appliances
- Fitness centers are a “must-have” on most renters’ wish lists, and fitness and wellness-related amenities ranked highest in terms of number of residents that would pay more money for classes and walking trails
- The top three amenities that significantly influence revenue and rent increases are pet friendliness, fitness centers and swimming pools
Keep in mind, some of the more popular apartment amenities can be easy for building owners to offer while others take a bit more sweat equity. For example, providing a pet spa will obviously appeal to pet-lovers, but your building must already feature the square footage and budget to develop and enhance the area. On the other hand, pet services, such as dog walking, have a lower barrier to entry while also providing true value for your residents.
Some of the following amenities are on the way up in terms of what renters will likely want:
- Bike friendly amenities, such as storage and repair services
- Online payments and maintenance
- Package lockers
- Electric car charging stations
When It Comes to Amenities, Follow the Golden Rule
Most industry experts agree: if you think it will drive value and require little up-front investment (in both effort and money), give it a shot.
The key to correctly setting rent and maximizing revenue is knowing which amenities make each apartment complex different – or better.
The bottom line is that by identifying the amenities of your building and properly pricing them, they can have a major impact on maximizing your overall revenue.