Investing in multifamily properties can offer significant financial returns, but maximizing your profit often depends on strategic upgrades that attract tenants without breaking the bank. Whether you’re looking to enhance an older building or improve new units, cost-effective renovations can increase rental income, tenant satisfaction, and property value. Here are several budget-friendly upgrades that deliver high impact and help you make the most of your investment in multifamily units.
1. Upgrade Kitchen and Bathroom Fixtures
The kitchen and bathroom are two of the most scrutinized spaces when prospective tenants tour a rental unit. Fortunately, you don’t need a full renovation to make these areas stand out. Swapping out old or dated fixtures for modern, sleek options can make a big difference with minimal cost.
Consider replacing faucets, cabinet handles, light fixtures, and showerheads with contemporary styles. Opt for energy-efficient faucets and showerheads to appeal to eco-conscious tenants. Not only do these upgrades improve the overall aesthetic, but they also help reduce water consumption, which can lower utility costs.
Estimated cost per unit: $200–$600
Impact: High visual appeal with minimal expense.
2. Modernize Lighting
Upgrading lighting is one of the easiest and most affordable ways to create a welcoming and modern atmosphere in a multifamily unit. Consider switching out outdated light fixtures for more stylish, energy-efficient LED options. LED lights not only consume less energy (resulting in lower utility bills), but they also have a longer lifespan, reducing maintenance costs over time.
In common areas such as lobbies or hallways, installing motion-sensor lighting can further reduce electricity costs while enhancing the property’s appeal.
Estimated cost per unit: $100–$500
Impact: Significant improvement in ambiance and energy savings.
3. Fresh Coat of Paint
Never underestimate the power of a fresh coat of paint. It’s one of the most cost-effective ways to give your multifamily units a facelift. Stick to neutral colors like soft grays, beiges, or whites to create a clean, modern look that appeals to a wide range of tenants.
For an even more budget-friendly option, focus on accent walls in common areas or individual units to provide a pop of color and personality without the need to repaint entire rooms.
Estimated cost per unit: $200–$500
Impact: Transformative change with minimal investment.
4. Update Flooring
While installing brand-new flooring can be expensive, you can still make budget-friendly updates by focusing on high-traffic areas. Replacing old or worn-out carpet with durable materials such as laminate, vinyl plank flooring, or tile can give units a more modern, polished appearance. Vinyl plank flooring, in particular, offers the look of hardwood at a fraction of the cost, while being water-resistant and easy to maintain.
For an even more cost-effective option, deep-clean and stretch existing carpets to extend their life and give them a like-new appearance.
Estimated cost per unit: $500–$1,500
Impact: Substantial improvement in durability and appeal.
5. Add Energy-Efficient Appliances
Tenants today are increasingly looking for eco-friendly and energy-efficient living spaces. Replacing old appliances with energy-efficient models can serve as a major selling point, allowing you to charge higher rent while reducing utility costs for tenants. Focus on major appliances like refrigerators, dishwashers, and washing machines.
Not only do energy-efficient appliances reduce monthly utility bills, but they also show your commitment to sustainability—an attractive feature for many tenants, particularly millennials and Gen Z renters.
Estimated cost per unit: $800–$2,500
Impact: Higher rent potential and long-term savings on utilities.
6. Improve Curb Appeal
The exterior of your property is the first thing potential tenants will see, so it’s important to make a good impression. Simple landscaping improvements such as adding shrubs, flowers, or mulch can drastically improve the curb appeal without costing a fortune. If your property has fencing, make sure it’s well-maintained or freshly painted. Additionally, pressure washing the building’s exterior and walkways can give the property a clean, well-kept look.
Installing new entryway lighting and updating door hardware are low-cost but impactful improvements that can make your property feel more welcoming and secure.
Estimated cost per building: $1,000–$3,000
Impact: Strong first impressions and increased tenant interest.
7. Install Smart Home Features
Incorporating smart home technology can be a big draw for prospective tenants and can significantly increase the appeal of your multifamily units. Consider installing smart thermostats, which allow tenants to control heating and cooling remotely. These devices are energy-efficient, help lower utility costs, and can make the unit feel more modern.
Other smart features to consider include smart locks, which add a layer of security and convenience, and smart lighting systems that can be controlled via mobile apps. These upgrades may require a larger initial investment, but they can quickly pay off by attracting tech-savvy tenants willing to pay a premium for modern conveniences.
Estimated cost per unit: $200–$800
Impact: High demand among modern renters and potential for increased rent.
8. Enhance Storage Solutions
Tenants often prioritize ample storage space when choosing a rental. Improving the storage options in your multifamily units can be both inexpensive and highly appealing. Consider adding built-in shelving units, closet organizers, or extra cabinetry in kitchens and bathrooms to maximize the use of existing space.
Custom storage solutions not only add functionality but also give your property a more upscale feel, all without requiring a significant investment.
Estimated cost per unit: $300–$1,000
Impact: Increased functionality and tenant satisfaction.
9. Upgrade Window Treatments
Window treatments can be a simple yet transformative way to enhance the aesthetic of a multifamily unit. Replace old or outdated blinds with modern options like faux wood blinds, roller shades, or even stylish curtains. Not only do these options look more sophisticated, but they also improve energy efficiency by providing better insulation.
Look for budget-friendly window treatments that complement the overall style of your units and appeal to renters looking for a balance of aesthetics and practicality.
Estimated cost per unit: $100–$400
Impact: Instant visual improvement and potential energy savings.
10. Focus on Common Areas
If your multifamily property has shared spaces, such as a lobby, gym, or laundry room, upgrading these areas can increase tenant satisfaction and attract new renters. Simple enhancements like repainting, adding modern furniture, or updating light fixtures can make these areas more inviting and functional.
Consider adding Wi-Fi to common areas, as this can be a major draw for tenants who want a communal workspace or a place to relax. These improvements may not cost much but can significantly elevate the tenant experience.
Estimated cost per building: $2,000–$5,000
Impact: Enhanced tenant experience and improved retention.
Final Thoughts
When upgrading multifamily units or other rental properties, it’s essential to focus on changes that offer the greatest return on investment while keeping costs in check. By prioritizing kitchen and bathroom updates, modernizing lighting, improving curb appeal, and incorporating energy-efficient and smart technologies, you can significantly increase the value of your property and attract high-quality tenants. At Ascent Multifamily Solutions, we understand the unique challenges property owners face and are here to help you make the most of your investment with strategic, budget-friendly upgrades. Contact us today to get started!
