Multifamily Renovation: 5 Practical Ways to Reduce Costs

When it comes to investment in projects such as multifamily housing renovation, investors prefer to play safe by investing only that is necessary. In addition, considering today’s economic scenario and the slow increase in revenue in rental housing market, home investors prefer to invest an amount that they can recover by increasing the rental cost of the property. Although investors would like to make a few big moves to gain a competitive edge for their multifamily property, remodeling the existing property with minimal expenditure make more business sense. 

On that note, here are five tips that will help you undertake a pocket-friendly renovation project, without compromising on the quality of the work.

Set a  budget determining how much you would expect renters to pay for the unit. Various independent market studies conducted for multifamily housing properties shows a standard rent trend across the board; investors should work backward and build a budget for how much they should spend on renovation expenses, such as operating expenses, service charge, and material expenses, among others. Make sure to incorporate profit into the equation, when setting a multifamily housing renovation budget.

Make changes to what customers value and not what multifamily renovation contractors value. For example, Crown molding has great value in certain areas of the building, such as the living room, and other public places of the building, but when a contractor puts them everywhere in the building, it not only increases the renovation cost but also diminishes the visual appeal of the design. Moreover, renters won’t be willing to pay extra for the design. Investors should consider all important factors, such as potential tenant’s choice, market trend, and budget before going for any remodeling as part of the renovation project.

Before putting your hard earned money in purchasing any building supplies, it is advisable to have a fair understanding of what material goes into the building’s renovation project, and in what quantities. Though service provider makes all provisions of material and supplies required for the project, having some basic understanding of things will help you negotiate with the provider from a vantage point. Competitively bidding renovation supplies is the first step towards smart buying. In addition, invest in some low-maintenance building materials such as vinyl siding and metal roofing. Even though metal roofing cost a little expensive during installation, they make up for the expenses in the long run as they don’t require frequent repairs or replacements.

Time usage can be improved by having a detailed planning of the project. Lack of information and a vague plan leads to increase in labor cost over time. Take time to walk through the property and make a note of necessary changes you want to your property or take the assistance of professional contractor to do it for you. Having a checklist of appliances, fixtures, and finishes will dramatically improve bidding for contractors.

When every one of us is concerned about pricing, it should be noted that in the end an experienced and renowned multifamily renovation contractor might reduce the frequency of mistakes, downtime, and unexpected overages. The experience of a competent contractor is invaluable to the home-building/renovation process. Established contractors have established relationships with suppliers and subcontractors, which is hard to get without considerable years of experience in the business.

Renovating multifamily properties from time to time is important to gain a competitive edge, but to undertake a cost-effective renovation project is even more important to ensure affordable housing and urban lifestyle to potential customers.