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Updated almost 10 years ago on . Most recent reply

Renovations that command the highest rents
Hi All,
I was hoping to hear which renovations on multi-family properties help command the highest rents. As with all real estate, I understand each market is different but wanted to see if there's a universal concept that can be applied to get the most bang out of your buck (i.e. does spending $5K on bathroom repairs immediately command higher rents compared to spending $5K spend on HVAC repairs).
I'm in San Diego (where cash flow is a bit rough) and specifically focused on properties in the class B/C neighborhoods. I've researched the BP website but was unable to find anything on this topic using the keyword search. Thanks in advance for your input.
Most Popular Reply

Understand that rents are not entirely within your control. If you are in a B/C neighborhood, you will have B/C tenants and get B/C rents no matter how much you renovate.
I fully renovate everything. But that is to reduce maintenance, force some equity growth and get houses rented faster.
People will not pay $1000 for an apartment in a neighborhood where similar apartments are available for $800 because it has a nicer bathroom. They just won't.
Now, what might actually increase what a unit is worth? Certainly more bedrooms as Bob suggests. Off-street parking if it isn't already available. Other than that? I'd focus on renovating to reduce expenses (repairs and vacancy) rather than to increase rents.
Rents are based about 50% on location, 40% on the size of the unit, and 10% on everything else combined.