Multifamily Minute Reader Reflections: Which Amenities Offer the Best ROI?
We surveyed our 45,000 Multifamily Minute readers about which amenities have had the biggest impact on their investments' ROIs.
There's no shortage of amenities you can offer the residents of your properties.
Not all amenities are created equally. Some are mostly flash but offer little in the way of return. Others are far more practical and offer a strong return on investment.
Do you know one from the other? We asked our subscribers which amenities or apartment features had provided the best returns for them.
Survey Results
Find the results from our most recent survey below:
Amenity Type | Percent of Respondents |
|---|---|
Fitness centers | 27.1% |
Pet-friendly policies | 24.9% |
Communal spaces | 13.9% |
In-unit washer/dryers | 13.8% |
On-site storage units | 13.1% |
Smart home features | 4.0% |
Business centers | 2.1% |
Other | 1.1% |
Let's take these amenities one at a time to see how they could (or might not) be valuable for your portfolio.
Fitness Centers are Key
With 27.1% of respondents indicating that fitness centers offer the best return on investment, it's evident that modern renters prioritize health and wellness. Incorporating a well-equipped gym or fitness area can be a major selling point and a differentiator from other multifamily properties in the market.
Not only does it attract future renters, having work-out space can be a great way to retain your residents, too. However, be careful not to under- or over-invest in these facilities. If there's a strip mall with a gym across the street, it may not be wise to compete with them.
Pet-Friendly is Almost Mandatory
Nearly a quarter of our readers recognized the importance of pet-friendly policies. As pet ownership becomes more common, allowing and accommodating pets can attract a larger tenant pool.
If you aren't already allowing pets on your properties, maybe you're concerned about potential damage to a unit. The numbers check out, though: When you allow furry friends, it's a give and take. You can certainly charge higher rents or require additional pet deposits, leading to increased ROI.
Emphasis on Personal and Social Spaces
Both communal spaces (13.9%) and in-unit washer/dryers (13.8%) emphasize the importance of convenience and community. Communal spaces foster a sense of community among residents, making the living experience more attractive, while in-unit washer/dryers offer unparalleled convenience, reducing the need for tenants to visit external laundromats.
Practicality Matters
The 13.1% favoring on-site storage units highlights the growing need for storage solutions, especially in urban areas where space might be limited. Having dedicated storage can be an attractive feature for potential renters who have extra belongings or seasonal items to store.
Slow Adoption of Tech
Interestingly, only 4.0% of respondents found smart home features to be the best ROI. While the tech industry sees rapid advancements, it appears that the adoption rate among multifamily investors is still relatively slow.
This could be due to concerns about initial installation costs, maintenance, or simply their renters not placing a great deal of importance on these features. However, as technology becomes more integrated into our daily lives, smart tech will likely play a more pivotal role.
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Our Previous Survey
We did have a survey last week, but I didn't write anything up about it. Why? It was focused on the type of content you, as a Multifamily Minute subscriber, want to see more of. The results were, simply, that many of you are looking for more insights into current market trends and financing strategies.
Want our latest trend piece? Head on over to the top 10 multifamily markets of late 2023.