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Updated almost 6 years ago,

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Jesse Masloski
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Seeking advice for building features of new economy 7 unit in SD

Jesse Masloski
Posted

First post here for me; appreciate any and all ideas and advice.

Background: I own a 5 unit rental, 1 and 2 bedroom units, near a strong and growing technical trade school in South Dakota. Despite a primarily student renter set, we (LLC) are able to maintain vacancy around 6%. The multi family zoning that the lot sits on is large enough to allow another multi-unit building.

Concept: The LLC is planning to take advantage of this R3 zoned lot and the proximity to the trade school, to build a new 7 unit building (max allowed by lot size and zone restrictions). Initial concept is for a mix of 1 and 2 bedroom units, basic in design and build out materials, with living space located directly above an oversized single garage stall. This type of unit would work well for trade school students, professional trade folks, or single adults. Pricing strategy for each unit would be to come in at comparable pricing for other like sized living units in town, offering basic/limited amenities, low utilities via a quality build, but with the extra value of a large, insulated and sheetrocked, decently appointed dedicated and secured garage stall. For example, the stall would have an oversized single garage door, and the depth of approx 1.5 full sized trucks, with room for a workbench, perhaps motorcycle, windows, etc.

Question 1: What advice might you offer for building design options for this new 7 unit rental?  For example, I'm considering paying the extra to split the electrical and gas meters so that the tenants will be more accountable for their energy use; any additional input on that?  Another example; I'm considering a wall design between units that would be maximized in reducing sound transfer; any specific input on successful approaches to that?

Question 2: What basic amenities might be worth the price to provide (and remember this is South Dakota)?  I'm thinking a shared free laundry space is one, perhaps a shared grill on an outdoor ground level patio.  Other thoughts?

Question 3: Security features?  Cameras in shared spaces?  Maybe not?

Question 4: Any other advice on balancing overall build costs with value to the future tenants?

Much appreciate your input!