Apartment construction is at an all-time high. There are more than half a million new units being built across the country which is twice as high as the historical average since 1982 (source). For many landlords these new construction projects are unwelcome news as they can become direct competition for new tenants especially in parts of the country where new construction is beginning to outpace demand. In an increasingly competitive market where landlords are trying to get the highest rent, below are several tips to help keep your rental building competitive.
Add competitive amenities when possible and plausible: Older buildings are starting to add amenities like gyms and lounges to compete with new buildings. Basements are being turned into playrooms and laundry rooms are being converted into bike storage (source). Adding amenities like small gyms can even pay for themselves if you’re able to charge tenants a yearly fee for use. However, it is important that landlords don’t overspend or over add amenities. Adding expensive amenities will not make a rental building more competitive if it causes a landlord too substantially raise rent on current and future tenants.
Market your property’s best features: Understanding what makes your building competitive and playing up those features will help keep your rental filled with tenants. Is your rental near public transportation, restaurants, shopping, parks, good schools and daycare? Are there plenty of street parking, good views and low outside noise? Each building has its own unique features which are important to market to tenants.
Have quality staff: Staff in your rental building can make all the difference. Friendly doorman and approachable supers create another reason for tenants to stay in your building. When rental buildings have low quality staff or high staff turnover it can frustrate tenants as they may feel their needs are not being met.
Give Your Units a Face Lift: It is common knowledge that renters prefer granite countertops, stainless steel appliances and central air. While all these upgrades may not be feasible, investing in a few new upgrades can keep your rental building competitive and prevent you from losing out on tenants.
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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.