3 Questions to Ask When Redeveloping an Apartment
Many landlords such as Steven Taylor make their money renovating buildings to be used as commercial real estate. After purchasing a property for redevelopment into an apartment, landlords must make many important decisions regarding the renovation process.
What Will Each Unit Look Like?
Each unit’s appearance is dependent on the structure of the building. For example, if the top floor of an apartment building has dormer windows, then removing them will be an expensive and unnecessary process. However, landlords do get to make many design decisions. They can pick how many rooms each unit will have by adding or demolishing walls. They can install extra bathroom facilities or amenities such as an island in each kitchen. Simpler details such as paint color and flooring type are also the landlord’s choice.
Who Is the Target Market?
Landlords and their employees, such as Taylor and his associates at Taylor Equities, should have a clear idea of who will live in their apartments. Conducting research into an area’s demographics, particularly for new residents, will help landlords focus their advertising towards a specific group. For example, if a neighborhood has seen an influx of young families, landlords could create billboards that feature new parents and their children along with the company’s logo and address.
How Much Rent Will Tenants Be Charged?
How much profit landlords make is directly related to how much rent they charge? This amount is based on an area’s average income and cost of living, as well as the quality and size of the apartments. Landlords must find a balance between making a profit and having low enough rent that enough people are interested in the apartments.
Redeveloping apartments is often a profitable venture, but landlords must be prepared to invest lots of time and money in the project if they want to be successful.