Posted on: 11 March 2015
For commercial property owners, one of the biggest challenges in deciding whether or not to renovate existing units, and to what extent, is the question of whether doing so will result in the ability to ask for increasingly higher rents. Whether it is simply repainting the interior unit or replacing the floors, light fixtures, and appliances, this article discusses why commercial property management companies might want to consider having their units renovated.
Attract More Qualified Residents
One of the best reasons for spending money on apartment renovations is to attract better-qualified applicants. Renters of means are more likely to base their decision on the overall appearance of the unit or complex, rather than fixating on price. They'll want to know that the rental rate is worth the living space.
There really is no substitute for more qualified, reliable renters, and in 2015, the competition for renters is fierce. Ultimately, renovating your complex can mean more stable income and higher rents.
Raise the Rent
Renovated units are also one of the best ways to not only raise the rent on recently vacated units, but to attract renters who can actually afford such units. Even in rent-controlled cities around the nation, renovations to existing units are one of the ways landlords can legally raise the rents on their units.
Although there are only certain renovations that qualify as major capitol improvements (for areas with rent stabilization), implementing any one of them will afford owners the opportunity to increase rents above and beyond what is normally allowed.
Keep Current Tenants
Another reason you might want to consider implementing renovations in commercial properties is to retain the renters you currently have. Even if you are not renovating that renter's unit, he or she might ultimately decide to renew the lease if allowed to occupy said renovated unit. Moreover, the renter will almost always be comfortable paying a little more for a unit that is outfitted with laminate floors or stainless steel appliances.
There are also a number of tax-related incentives for those who pour money into their investment properties. From repairs you can claim as expenses, to capital expenditures that you can depreciate over time, there really is no downside to renovating commercial rental properties.
Overall, the advantages afforded by rental property renovations are substantial. Whether your property is in one of the rent stabilized regions of the country or you are simply looking for a way to lower your annual tax expense, property renovations are one of the smartest ways to achieve your goals. Not only can they increase your income, they can make for more stable revenue streams and even attract more qualified tenants.
Learn more by talking to local resources such as Kansas City Remodel and Handyman Allen.Share