In the competitive world of real estate, many properties are sold and rented based, not on traditional features like square footage, but on the value added by the property’s amenities. As a leasing professional, property manager, or landlord, understanding your amenities and how to price them for your market is one of the most powerful tools you can have on your cash flow bench.
What do people in my area find valuable?
First, though, you must understand what your valuable amenities are based on your market and demographic. Amenities, in general, are features of your properties – both tangible and intangible – that add a perceived value, allowing you to increase the rent or sale price accordingly. Traditionally, amenities package included things like fitness centers and pools (for apartments and condos), maintenance and security services, distance to shipping facilities like FedEx and USPS, and the all-important proximity to parks (one of the most reliable value-adds for both commercial and residential real estate).
Depending on your location, as well as the people you’re trying to attract, the amenities that you can advertise and capitalize on vary. Take, for example, properties in New York City, which see incredible value increases for views of Central Park, but see very little value increase for water-facing frontage (a trend that bucks nearly every reliable statistic in real estate).
What amenities will add the most value to my property?
After you’ve answered that question, it’s time to look at what value those amenities add to your property. Once again, this can vary based on your location and market. If your property is a high-end shopping facility, the perceived value added by attractive landscaping and water features will be significantly more than if you’re offering warehouse space.
Be honest with yourself as you compile this data. Are the features that you’re listing as amenities still on trend or do you need to invest in updates that will add value that savvy tenants are seeking? This is especially true for fixtures and other aesthetic elements in your properties: they lose value as time passes.
Comprehensive analysis of past sales and rentals combined with detailed research about your demographic will reveal what amenities will secure the biggest bang for the buck.
Tip: As you’re getting ready to list, know that one of the power powerful selling and renting points for your property is the photo of your frontage that appears on your listing. While intangible, curb appeal gets more people through the door, so invest your time and funds in not only the overall appearance of your property, but quality photography.
SKYLINE understands how important amenity pricing packages are for property managers. Our industry-leading pricing modules allow you to input all of your amenities, as well as the value that they add to the overall price, to apply them to your rents with a single click.