Owning a multi-family unit in Virginia is a smart financial decision. It’s an extra source of income that’s passive, with a few exceptions. One of those exceptions is that commercial landlords must actively coordinate any necessary renovations, remodels, or repairs within units or to the exterior of the property.
Renovations require investment of your time and money, as well as making a strategic decision about who to hire. Sometimes, they lead to massive ROIs; other times they may not be necessary. Ahead, find seven signs it’s time to renovate your multi-family property in Virginia.
Muli-family properties in Virginia and commercial contractors
Before we dive into the signs it’s time to renovate, what exactly is a multi-family property in Virginia? The name is basically self-explanatory: it’s a property where multiple families or individuals live. These properties can span in size, from giant apartment complexes to a town house divided up for two tenants or smaller condo complexes.
What all these properties share is one common myth. Since they are “residential” communities, many people believe you should hire a residential contractor for remodeling, renovation, and repair projects. This, however, isn’t a good idea. Residential contractors are used to working with individuals who want to make their homes more aesthetic or usable.
Multi-family properties, however, are a business investment. Commercial contractors will treat them as such and be able to balance aesthetic concerns with your budget and business goals. Plus, they’re pros at making units look similar or have commercial appeal that can help earn you higher rents.
Signs it’s time to renovate
Now that we’ve established what a multi-family property is and the right type of contractor for renovations (i.e. a commercial contractor), how do you know when it’s time to renovate? There’s actually multiple signs, and the most common are outlined below.
You want to increase rent
Perhaps the most obvious reason to renovate a multifamily unit is to increase the rent. Updated units with modern appliances, sleek finishes, and trending countertops often rent at higher rates than run-down units with older appliances.
And this applies to multi-family units and other types of commercial properties. A commerce park, for example, is able to charge higher rent after renovating individual office spaces too.
Location, location, location
Everyone knows the golden rule of real estate: location, location, location. For those of us living in the Virginia Beach, Hampton Roads, and Chesapeake, Virginia areas, we chose a great location for commercial properties. In fact, a recent study suggests the local commercial real estate market is stronger than the national market.
Alongside the market value of a great location, you can increase your property’s value through a well-timed renovation. Kawaii Corner experienced the dual-power of a renovated space in a great location. Before opening at the Lynnhaven Mall, they renovated their storefront. At the grand opening, the line of eager customers wrapped throughout the mall.
The units are rundown
More people are renting today than ever before. For many renters, living in quality units is a yop concern. If your units are starting to look a bit rundown, it may be time to call in a commercial contractor for a renovation.
But before you panic about having to shut down the entire property, know that unit renovations can be down bit by bit between renters instead of all at once. Bay Lake Retirement Community was able to renovate different units between tenant leases. This allowed them to stay open during renovations, and they saw increased interest when renovated units went back on the market.
The exterior of the building is rough
We shouldn’t judge books by their cover, but many of us definitely judge buildings by their exteriors. If the exterior of your multi-family property is run-down, it can be harder to garner top dollar or even get ample interest from rental ads.
At First Colonial Inn, residents love the spacious balconies that come with each unit. The balconies and exterior of the complex’s buildings, however, were starting to look rundown. To spruce up the building’s exterior and replace the balconies, First Colonial Inn called in Carlton Building Service, who was able to maximize curb appeal with small, cost-effective improvements.
You’re just starting to rent unit
When you first purchase property, there’s a chance some renovations will be required. Having a commercial contractor on call who can assess the property and recommend any necessary changes is a smart idea.
The recent landowner of an industrial rental property in Chesapeake, Virginia did just that. They brought in the team at Carlton Building Services to renovate the space, with the aim of increasing curb appeal. After the renovation project, they were able to ask for a higher rent.
You’re looking to sell
There’s many reasons you may be looking to sell (not rent) a commercial property. Maybe you’re done managing a multi-family property or are choosing to retire. Whatever the reason, bringing in a commercial contractor who finishes projects on time and on budget to do some renovations beforehand can get you a higher price for the property.
You want to avoid future headaches
At the end of the day, a renovation, repair, or remodel is an investment in your property. Its dividends include higher rents, better reviews, and fewer complaints. The last may not be one you’ve thought of before, but when things work correctly and you’re proactive about improving your property, tenants put in fewer maintenance requests and experience fewer issues that need to be resolved. Plus, their reviews tend to be better and they recommend your property to friends.
Selecting the right contractor
If you read through the signs above and thought to yourself, “Our property could use a renovation,” the next step is to find the right contractor. Ideally, thay contractor should:
- Have experience in commercial contracting, not residential
- Be local to the Virginia Beach, Chesapeake, and Hampton Roads area
- Communicate effectively
- Have a track record of successful projects
- Be able to discuss how the renovation will increase the value of a multi-family unit in Virginia
- Finish on-budget and on-time
- Be able to operate while your property remains open for tenants (if required)
As you explore different commercial contractors in the area, Carlton Building Services may be a good one to add to your list. Our team checks off the seven must-haves above and provides an excellent renovation experience. Contact us today for a free quote on your renovation project.
