I’d rather have lower but steady cash flow than potentially higher cash flow, but it be inconsistent. Right? Let’s discuss this a little further. It’s a tough world out there for apartment owners right now. Even if you’re not an owner yet, you should pay attention to this as well. Even though we apartment owners are surviving the recession better than the average investor of other commercial real estate property types, we still are admittedly struggling with keeping tenants anchored in our apartments long term.
There’s so much competition and so many choices out there. What I am discovering are that apartment amenities are key to attracting targeted tenants and keeping them long-term. Amenities include things such as: parking, storage, pools, laundry, clubhouses, on-site management, playground areas, fitness centers, gated access, and internet services, just to name a few. These “little” things are more important than you think.
Research indicated that at least 8 out of 10 individuals wanted internet services in their apartment complex. About 85% preferred having both on-site-management and maintenance available at their apartment complex. When asked about the issue of parking, about 65% agreed that parking spaces maybe a deciding factor on which apartment complex was chosen.
Less than 10% was interested in having a clubhouse as part of the apartment complex, which left an astounding 80% that did not care for such amenities. Isn’t this interesting? Laundry received a 65% “Must Have”.
When asked about storage spaces, only 35% believed that this would pose an issue for them.
The pool received high remarks with over 85% agreeing that the question about a pool will surface. Fitness center and a playground area both received about 45% of the surveyed audience who agreed that having these amenities would persuade their rental decision. 20% was interested in having a gated community and believe that this would be a top priority for them. This should be taken all into consideration even when thinking of adding an apartment investment into your portfolio.
Here are the Top 10 Apartment Must-Have Amenities:
3. Covered parking
4. Washers and dryers
5. Pet-friendly community
6. Gated access
7. In-unit security
8. Fitness center
9. Guest bathrooms
10. Club house
And here’s an interesting thing about these amenities that may surprise you: Even though the tenants want things such as a pool and a fitness center, it is used rarely by them. Incredible, huh? But in order to attract them, you gotta have it. Just crazy if you ask me.
So there you have it. Money-making information straight from the tenants themselves. They are telling us something aren’t they? Are we going to listen? I sure have been. Steady cash flow, even if it’s a little lower is better than none.
Til next time my friends….