Average Cost to Update Apartment for Repositioning?

[Hannah Hammond]

Hey BP!

For those of you who have experience with repositioning apartment complexes, what have you found to be the average cost per door or sq/ft to update each unit (new paint, floors, maybe counters) in a B to C+ area? I know this number can very greatly but a ball park number that's typical to shoot for will help. Also, do you typically hire sub contractors to do the work or a GC? Any input would be awesome, thank you! 

Hannah Hammond

[Tamiel Kenney]

It is also important to look at other properties in the area to determine what level of upgrade is ideal for the area.  For example, if nobody in the area is putting in granite or stainless appliances, then you have to make a decision if you want to be the first one in the area to do it.  I would be cautious being the first one because you could end up improving too much for the area and not getting the rent bumps you need.  You can also try different levels of rehabs and see what type of response you get from prospects.  Engaging a good management company to help determine the level of upgrade that is appropriate for the area.