Multifamily Renovations

A multifamily property is a significant investment and to make the most in terms of profit, you need to pay a lot of attention to the renovation aspect. If you opt for a multifamily property that is up for resale, there’s a possibility that the construction would be either too old or there would be hardly any amenities to attract tenants. You will be left with no choice other than making improvements in the existing construction, which is again a tough nut to crack. Hiring a multifamily exterior renovation company that can assist you with improvising the interiors of all the rental units is always the safest bet. Even if you have multifamily apartment renovation contractors by your side, there are a few points to keep in mind when renovating a newly bought multifamily property. 

Take a look.

Doing the Right Renovations

Hire multifamily exterior renovation specialists who can give you the right options on renovations. There is no end to renovations and repairs. But many can be cosmetic, and just for appearance sake. Some can also be deferred. Indulge in innovations that add value, and repairs that are essential.

Choose Reputable Multifamily Apartment Renovation Contractors

Select a multifamily exterior renovation company that has licensed contractors with suitable experience. Do not go for cost cutting methods or get the work done with cheap materials and unsafe contractors. The liabilities for damage and mishaps will have horrible financial and penal consequences and can spoil your reputation.

Do not Underestimate Actual Repair Cost

Often appearance can be deceptive; and there is more truth in this when it come to assessing repair and renovation work. What appears as a defect on the surface may have deep hidden problems. For example the peeling of wall paints and plaster may be caused by plumbing lines damaged by aging. The difference in costs involved in renovating the surface, and repair and change of plumbing lines can be huge. It is better to be liberal and allow for such errors in judgment to estimate the cost.

Do Not Assume Renovation Cost to Be Offset by Appreciation Rate

Real estate does not work in a simplistic pattern. There are many factors that contribute to the value of property. Putting in more money may sometimes prove to be a sunken cost. Prudent people avoid putting in good money after the bad. You have to choose the property and the cost of renovation involved, wisely to achieve a positive NOI.

Get FHA 203k for Multifamily Property

Often multifamily properties are bought so that the owner can live in one of the apartment or unit; and leverage the mortgage payment from rent or lease from the other units. If this is the case then getting an FHA 203k for a multifamily building is easy and works out well with most home owners. FHA 203k loans are backed by the federal government and given to help buyers finance an older home that needs significant repairs. An FHA 203k lender would then give you the money to buy the house plus the money to do the necessary renovations. 

The Federal Housing Administration (FHA) - which is part of the Department of Housing and Urban Development (HUD) - insures the loan, so your lender can offer you a better deal. 

To avail these low interest loans you need to check the other eligibility criteria; besides fulfilling the basic requirement that it must be the owner’s primary residence.

Wrapping Up

A well designed and maintained multi family property can help generate a steady stream of income for years. That said, when choosing their next rental, renters are becoming increasingly demanding. If you own a multi family property, rehabbing and introducing physical changes to your property can help increase its value to a certain extent. For sustained benefits, you need to plan a repositioning project that involves changing the property’s image to target a wider audience base. Before you hire expert multi family asset repositioning services, go through the post that lists some ways to reposition your property. Read on.

1. Introduce Cosmetic Changes  

Simplest of the four repositioning strategies, cosmetic changes involve changing the important aspects of the property to enhance its appeal. Some common structural changes are: restriping and resurfacing the parking lot, including signage and renovating the interior and exterior. This is the least involved repositioning strategy but can do wonders for the property’s aesthetic appeal, thereby, handing you the ticket to demand a higher rent.

2.  Plan Structural Changes 

Structural repositioning includes adding decks, introducing changes to the existing architecture, reinstalling mechanical systems and adding pools, exercise rooms, recreation areas and other amenities. Structural repositioning is a highly involved, time taking and capital intensive process. To minimize work related disruption and help you renters manage their everyday affairs smoothly, plan the project in advance. Request your contractor to provide a timeline for completion.

Related Post: Strategies for Repositioning Multifamily Property

3. Opt for Functional Upgrades 

Functional upgrades involve upgrading the existing plumbing and electrical fixtures. Replace existing traditional faucets with their smarter and intelligent counterparts that have temperature gauges and efficiency sensors. Look for dual-flush toilets that reduce the full flush water requirement. Functional upgrades also involve replacing conventional lighting with energy star rated halogen incandescents, CFLs and LEDs that help save energy and also have a long life. 

4. Implement Operational Changes 

Operational repositioning involves changing the way the property is managed. Some common operational changes include: changing the existing property management company and removing nagging or troublesome tenants.  Switch to online bill payment systems that allows your renters to pay utility bills online, thereby, helping them save time.

Conclusion 

Majority of multifamily investors are investing in energy efficient technologies that help them reduce energy footprint of their multifamily property. Whether you just invested in a multifamily property or planning an extensive exterior and interior renovation of the existing multifamily property, investing in energy efficient systems can help you earn long term returns on your investment. Having said that, before carrying any major renovations, seek services of a reputable renovation company to conduct an energy audit of the property. Doing so will help you determine the most efficient ways to reduce the overall energy cost of your building. Continuing the discussion, the post discusses four energy efficient improvements that are must-haves for long term gains. Take a look.

1. HVAC Systems

Installing HVAC systems, or heating, ventilation, and air conditioning system is an efficient way to make your property energy efficient and affordable. More energy efficiency means lower energy bills, which in turn make the property more attractive to potential buyers and also retain existing renters. Simple changes such as replacing the older air conditioning unit in your property interiors with a latest star-rated model can help save big on the energy bill.

2. Solar Water Heaters

Harnessing solar energy has become a norm today. Solar energy is probably the largest source of renewable, unconventional energy, and has tremendous scope in designing energy efficient improvements. One such utility, is the solar water heaters, that can directly harness incident sun’s energy to heat the water stored in a container. Compared to electric water heaters, solar water heaters use no electricity in heating the water, and can also function for a larger number of years.

3. Cool Roofs

The advent of modern day cool roofs, has singlehandedly changed the way how construction and remodelling contractors install and maintain the roofing systems in multifamily properties. Such roofs absorb less heat during the hot summer days, and help keep the interiors of the building cool. Usually, without the cool roof, buildings those have normal roofs, can heat up to 150 degrees Fahrenheit or more, during summers. Installing a cool roof, however, can easily help reduce the interior temperature by at least 50 degrees Fahrenheit.

4. Duct System Diagnostics

Leaking air ducts are one of the major causes of high energy bills in multifamily properties. The leakage of cool air through these air ducts results can result in lesser thermal insulation of the building’s interiors, and in turn increases the energy usage to maintain the temperature of the property. As a multifamily property owner, therefore it is your responsibility to periodically inspect the duct systems and timely carry out any repair works.

Wrapping Up

Landscaping around a multifamily property has a great impact on its rentability as it is the first thing that comes into a tenant's notice. No matter how beautiful the interiors of your multifamily property are, you wouldn’t be able to create a long lasting impression on the tenant's mind until the exteriors of your property are well maintained. In addition to improving the aesthetic appeal of your property, landscaping also has a great impact on how eco-friendly the multifamily property is. For example, strategically planted trees can cool off your property and reduce the energy required to air condition it. Continuing the discussion further, let’s have a look at some of the ways you can create an eco-friendly landscape. Read on.

1. Plant Native Plants

When planning for landscape with your renovation contractor, consider planting native plants and trees. Avoid going for the exotic plants because they require more water and care than the native plants. Since native plants are adapted to the climate and soil of your area, they will flourish and also be more resistant to pests and diseases, thus, reducing the need for pesticides.

2. Make Use of Xeriscaping

Xeriscaping is landscaping that helps in reducing the need for supplemental water from irrigation by use of efficient irrigation systems, low water-use plants, and creating water-wise landscape or garden designs. Most people consider xeriscaping for arid landscapes, however, they are also beneficial for all gardens and landscapes.

3. Incorporate a Kitchen Garden

Cultivating fruits and vegetables on your own is a great step towards sustainable living. It helps you to save money and also ensure what you eat is devoid of pesticides and healthy. To benefit the goodness of self-cultivated fruits and vegetables, use natural and organic gardening techniques. For instance, instead of using synthetic or artificial fertilizers, use natural fertilizers such as horse or cow manure and yard compost.

4. Plant Deciduous Shade Trees

Planting deciduous shade trees around your multifamily property help in reducing the consumption of energy by cooling your property during summer by giving shade to your property. In winters, when they shed their leaves, they keep your property warm as they allow the sunlight to fall on your property. To get the maximum benefit out of deciduous trees, plant them on the east and west-facing sides of your property. Doing so will help you shade your property during the hottest months of the summer.

5. Use Organic Products and Techniques

When maintaining the landscape around your multifamily property, use only natural and organic products and techniques. Doing so will create a healthy environment for the occupants and their pets. It will also help you keep the groundwater free of harmful and toxic substances.

The Bottom Line

Metal roofs are one of the more robust, and energy efficient roofing solutions available on the market. Metal roof shingles and standing seam panels are resistant to high speed winds, rain water, and other external vagaries, while being aesthetically appealing. Metal roofs also incorporate highly reflective acrylic or elastomeric coatings that help keeping the house cool during sweltering summer days. That said, given the number of coating colors options, it can sometimes become confusing to choose the right color during interior and exterior remodelling projects. To help, this blog post discusses five factors that can help you choose the right color coating.

1. Keep the climate in mind

The ambient climate is an important factor to consider when determining the right metal roof coating color during your multifamily renovation project. The choice of color varies across regions. Primarily, regions that have colder climates, have roofs with darker shades that absorb sun’s heat, while those with warmer climates tend to have metal roofs with lighter shades of coatings that reflect sun’s rays. Depending upon the climate in your area, you have to determine whether you need a roof coat that absorbs the incident sun’s rays, or reflects them back.

2. Conform roof color with the house

Primarily an artistic factor, it is important that you base your choice of roof coating with the rest of your house. The roof coating can either compliment the color of the exterior walls of your house, or can go with that on the window trims and doors, really the choice is yours. You can take inputs from your family in the decision making process. Alternatively, you can also seek consultation from your multifamily renovation contractor.

3. Choose a color that can enhance curb appeal

Nothing strikes out like a sore thumb, than a house with exceptionally bold and dark roof color. You should avoid applying roof coatings that have a really bold color shade. Instead, go for neutral colors such as gray, white, and grey, to blend your house with the neighborhood. Darker color roof coatings also make your house appear smaller than it is actually, which is a definite no when it comes to curb appeal.

4. Pay careful attention to the chosen color shade

Before deciding on a color coating, you must ask for several samples from your renovation contractor. This helps to compare the luminosity of two similar color shades, and make an informed choice. In addition, you must check the color samples under different lights; under indoor fluorescent lighting, sunlight, and in darkness, to assess the hue under varying lights.

Wrapping Up

Just the way light-colored clothes help us keep cool, roofs are no exception. Light-colored roofs reflect the sun's rays and help keep the living spaces beneath it cool. The difference is that even modern dark roofs are as capable of throwing back heat into the atmosphere as light-colored roofs - thanks to the evolution in roofing technology. Energy-efficient cool roofs help us lower energy bills and urban heat island effect. No wonder professional roofing service providers in Texas and other states always suggest multifamily property owners to install energy-efficient roofs in their buildings. In this blog post, we look at four prominent energy-efficient roofing materials to consider for your next roof upgrade. 

1. Modified Bitumen Sheet Membranes

Modified bitumen is an evolved version of asphalt roofing and is strictly meant for flat or close-to-flat roofing systems. Regarded as a highly cost-effective roofing material, the roofing membrane helps improve your building’s energy efficiency to a large extent and reduce the risk of urban heat effect. Vinyl roofs or thermoplastic polyvinyl chloride (PVC) membrane roofing are a solid example.

2. Spray Polyurethane Foam

According to the U.S. Environmental Protection Agency’s Energy Star program (EPA), building owners can slash their monthly energy bills by up to 20 percent, if they properly insulate and seal the air leaks in their properties. That’s a big reason to use spray polyurethane foams for your roofs, as it’s both an effective insulator and an air sealant. You must, however, apply a protective coating over spray polyurethane foam, as it is susceptible to hail and UV damage.

3. Insulation Board and Tapered Systems

Insulation or polyiso cover boards are one of the most cost-effective solutions to enhance the long-term performance of commercial roofing systems. Resistant to mold growth and wind, they protect insulation from foot and equipment traffic. Besides being lightweight and easy to install, these materials have negligible global warming and zero-ozone depletion potential.

Conclusion

Roofing system in a commercial building structure not only works as a support system to keep air conditioner vent, but also works as a protective shield to protect its occupants. Out of several roofing solutions available on the market, standing seam roofing system is highly in demand due to its simplicity, versatility and durability. Having a well-designed roof that complements your building structure not only enhances its aesthetics, but also offers a great return when the building is put on sale in the market. This is one of the primary reasons commercial property owners are investing in standing seam roofing system. Before you hire professional commercial roofing services here is all you need to know about standing seam roofing system.

What is Standing Seam Roofing?

In a standing seam roofing system panels running vertically up the length of the roof are connected via seams. This style of roofing is quite different from traditional roofs, such as architectural & composition shingles and energy-efficient single-ply systems, as its unique alignment leads to a solid covering that is flexible even during thermal expansion.

Benefits of Standing Seam Roofing

Standing seam roofs are durable and hard-wearing.

Unlike architectural & composition shingles that develop gaps with time, resulting in leak problem, standing seam roofing comprises panels slotted together snugly with raised seam for protection against natural elements.

The outer sheet of the seams is available in different colors and shapes resulting in a visually appealing roofing system.

It is easy to incorporate architectural components, such as tapers and roof penetration features - skylights and access hatches into standing seam roof design.

Standing Seam Roofing for Commercial Properties

In addition to big commercial properties and multiplexes, you will easily spot standing seam roof in all types of properties from country barns to city restaurants. Available in different styles and colors, it is easy to find standing seam roofing material suiting your building structure. Though you may have to shell out a little more for a stylish standing seam roof that complements your property, given its durability and sturdiness, it is worth an investment. In addition, a standing seam roof requires less maintenance in the long run.

Final Few Words...

Besides inspecting the primary living space, prospective clients and tenants judge residential properties, by the condition and the styling of the front yards. Multi-family properties in general, feature a prominent front yard that adds an immense appeal to the property, and presents it as the standout entity of the neighborhood. Exterior remodeling contractors offer a complete gamut of exterior home renovations, which assist in vaulting the overall appeal of your curb, and thereby, enhancing your property’s appearance.

This blog post discusses five exterior decor add-ons and renovation ideas that would aid in procuring tenant’s interest and more property value.

1. Adding Pots and Containers

One of the most simple, yet, classic exterior curb decor technique is the addition of containers and pots that give your curb an extra dimension of space management.  You could ask your exterior remodeling contractor to add galvanized or coopered wooden pots along the curb while getting the exterior home renovations done. This would help draw more attention from the onlookers towards certain flowers present in the yard, while giving the effect of everything blending-in together.

2. Incorporate Water Features

You could get a small water fountain or a tiny pool into your garden, or remodel an existing one, thereby, giving your front yard a facelift, which enhances its tranquillity. Not only does these water features help impart a beautiful, paradise-like look to your front yard, but also allow you to achieve peace of mind. You could also place an overturned Cretan pot over a pump, to give the fountain an additional charm.

3. Add Romance to your Curb

While your property is undergoing external home renovations, you could also seek the assistance from the remodeling contractor, in adding a little romance to your front yard. Placing a wooden bench near your porch, or plating-peonies during summer time would blend wonderfully, with the flower species in your garden, adding rich color and texture to your front yard.

4. Avoid Cluttering in the Garden

One thing that you do not want to do in your front yard is to clutter it. Cluttering your garden with unnecessary objects such as old children’s toys, garden gnomes’ and other junk items, would distract onlookers and prospective tenants, underplaying all the other beautiful aspects in your front garden. You should keep the garden simple and take care in choosing the right plants and flowers for your front yard. In case, you are not able to design your garden on your own, seek help from an exterior remodeling contractor.

5. Keep the Grass Mown

Often property owners take good care of the front garden, devoting much time and efforts in maintaining it, they kind of neglect the lawn in the process. You should also dedicate some time in maintaining the condition of the lawn, by mowing all the unnecessarily tall grass and pull out all the weed growing in between. While your property is undergoing exterior home renovations, you could seek assistance from the remodeling contractor, in mowing all the grass and manicure your lawn.

Bottom line

Asset repositioning entails multiple benefits. Owners, whether they decide to give a cosmetic change to their property or plan its complete make over can demand more rent from their tenants. Additionally, the right multifamily asset repositioning can both help you decrease tenant turnover and help maintain the integral structure of your property. However, there are several factors to consider before investing in asset repositioning. Through this blog post, we cite three of the primary ones.

Related Post: 3 Effective Ways to Reposition Your Property for Maximum Returns

1. Opportunity Cost

Opportunity cost is the difference between the investment you made and the one you could have chosen instead of it. What this means is if you invest a certain amount of money in a particular thing, it should reap more benefits than it’s alternate investment. Applying the same concept in asset repositioning helps owners ensure that the project they have chosen to invest makes sense and their investment serves them optimal results.

2. Breakeven Time

The breakeven time is the time required to get back the same amount that you have invested in a particular investment. In the case of asset repositioning, therefore, it is the time in which you are able to get that amount back that you had invested in the makeover of any property. For instance, if you invested $5,000 in asset repositioning and it took you a year to get this amount back in a year’s time, the breakeven time would be one year.

3. Type of Asset Repositioning

Asset repositioning has certain levels from cosmetic changes that involve minor and non-structural alterations to extensive rehab and facelift that involve the installation of new appliances in a property. Though the type of asset repositioning depends on how much you are ready to invest, it also decides your potential ROI.

Related Post: 3 Factors to Determine the Feasibility of Asset Repositioning

Conclusion...