The methods used to increase apartment value in Miami are quite simple. You might have overlooked one or two factors, but this guide will simplify 8 shortcuts to increasing your property value.
The higher the value of your property, the higher the income it would generate in the long run. As a landlord, you should ensure your apartment is in the best condition it could be to boost your overall rental earning.
Advantages of Investing in Apartments in Miami
Apartments are a multi-family property. Owning such a property earns you way more than what you can earn from a single-family house. However, it all depends on the number of units and the rent collected from each unit.
You can own apartments but don’t feel the returns being decent as you anticipated. You’ll have to add value to the property through the simple ways we’ll discuss below.
How to Increase Apartment Value in Miami:Â 8 Simple Steps
- Renovate the interior
- Revamp parking area
- Enhance lighting in the houses
- Include washer and dryer
- Upgrade amenities
- Improve on security
- Include storage units
- Include pet amenity
Renovate the interior
Every potential tenant will judge your property’s worth by how the interior looks before asking for a quotation. They might not even ask for a quotation if the interior doesn’t appeal to them.
Your bathroom and kitchen would say a lot about the property. You should renovate the kitchen to a modern one. Most tenants are looking for modern kitchens that support all kitchen appliances.
The size and environment of the bathroom space should be appealing too. Environment! Yes. Tenants want bathrooms that they’ll feel comfortable using. How do you feel in an aging toilet that is hard to flush and the drainage has issues? Make sure you can use the bathroom comfortably yourself.
Have the floors redone. There are modern tiles that are in high demand for tenants seeking housing. Understand your tenants’ desires and redo the floor.
All these repairs can be made easier with help from an interior designer. Find an interior designer with experience from within Miami to help you. It will cost you some dollars but count that as an investment. You will increase your rental income afterward.
Revamp the Parking Area
Tenants will also notice the condition of your parking lot or availability. Do you have a parking lot? If present, how many slots per unit? Are their potholes on the floor? Is there a roof over the parking lot?
They’ll look at all that. Make sure you have all these well done on your checklist. It will boost your property value and appreciate your rental income.
Ensure Adequate Lighting
If your apartment can have natural light, have windows that will allow light to enter the room. If you can’t have natural light in your apartment, have electric lighting well distributed in the rooms and hallway.
A well-lit room is more welcoming compared to a dim one. Tenants wouldn’t mind paying a little more to have a well-lit apartment.
Include Washer and Dryer
We have from the age of walking/driving down the block taking our clothes to the laundry. Have every apartment fitted with a washer and a dryer.
If that is beyond your budget, you should have a common laundry area for your tenants. That would include several washers and dryers instead of having them in each apartment.
Millennials and Generation Z tenants look for such convenience before choosing a house.
Upgrade Amenities
Another thing that would increase the value of your apartments is having amenity areas. You can have a swimming pool or a playground on the premises.
Tenants love the idea of such amenities within the premises and they can access them for free. Having such amenities raise the value of your property significantly.
Improve on Security
Have cameras fitted around common areas and the entrance to the premise. You can also hire a security guard to man the entrance.
There are plenty of security upgrades you can do on your apartment. For instance, fitting biometric locks or limiting access to the floor to only occupants of that floor.
When tenants feel secure in your apartment, during house hunting they are more likely to pay the quoted price.
Include Storage Units
Have secure storage units for each apartment. If there is no room for such a do-over, you can still have a common extra storage unit that is secure with locks.
This will cater to tenants with a lot of household belongings. It will also allow tenants to buy extra belongings and move the surplus into storage, without switching to a bigger house.
Have Pet Amenities
A lot of tenants are adopting pets. Having a pet-friendly apartment would make your property more appealing to pet owners. Have your premises fenced to prevent pets from going far from the premises. This alone would make a huge difference in the eyes of a pet owner.
You can also include a common play area for pets. You cannot go wrong with pets, ask some of your tenants for suggestions. Having them voice their suggestions also enhances the landlord-tenant relationship.
Doorway Trash Pickup
Hire someone to collect trash from your tenant’s doors. Tenants enjoy such services and wouldn’t mind paying for them.
Having all these aspects looked into on your apartment would boost your apartment value significantly.
Difference in Apartment Classes
There are four classes that categorize apartment buildings:
- Class A – These are high-quality luxurious apartments. They are less than 15 years old, have social amenities, and are in good condition. Attract high-income earners.
- Class B – They are a little older than Class A apartments but are in good condition. Have high security, and social amenities and attract middle to high-income earners.
- Class C – Most of them lack amenities, and they are older than 20 years. They need repairs to upgrade to Class B. Their rental income is low.
- Class D – These are apartments with visible wear and tear. They are in undesirable places. Rental income is significantly low. A lot of repair work is needed to upgrade to class C.
A value-added apartment is an apartment that has had repairs and a face-lift done to it. The property could have been at Class C previously but after value addition, it crosses to Class B.
Increasing the value of your property enables you to earn more rental income from it. Do you know how to calculate the value of your property?
How to Determine the Value of Your Apartments
There are three approaches to determining the value of your property:
- Income approach – you’ll have to work backward. What is the income from your apartment? If it generates $50,000 annually which is considered to be 5% of the property, then the property value would be $1,000,000.
- Cost approach – Add the price you bought/built the apartment for then add all the repair costs. That total cost is equal to your property value.
- Market comparison approach – This will help you when you are buying an apartment. Compare data of similar buildings that have been sold in the area. They are usually referred to as comps. Similar properties within the same area sell within a price range.
After you have added value to your home and earned it for a year, you should calculate the ROI and see if the returns are what you wanted. I’m sure you would be disappointed.
Final Thought: How to Increase Apartment Value in Miami
We have seen that if you increase apartment value in Miami, it will boost your rental income. After the value addition, you should make sure the apartments are well-managed and maintained. This will make sure they preserve that value.
It seems like a never-ending task, hire an expert property management company in Miami who would handle that for you.
FAQs – Increasing Apartment Value in Miami
What adds the most value to a property?
All-round upgrades add maximum value to your property. Independent aspects complement each other and bring out the elegance of the house.
What is remortgaging a house?
When you move your existing mortgage loan from one lender to another. Happens when you will get a better deal with the second lender.
What does the value of a house mean?
The cost of your house. The amount you’ll quote when selling the house. This amount should be cost input.
How do I calculate equity in a house?
If you took a mortgage loan of $100,000, paid a down payment of $20,000 to buy a house. A year later you collected rent amounting to $12,000. The return on equity would be 12,000 ÷ 20,000 = 0.60 or 60%
