51Âþ»­app

5 Renovations Planning Mistakes to Avoid in Multifamily Properties

Renovation projects have the potential to create a lot of excitement around a property and deliver significant return on the capital expenditure investment. Refreshing a property increases the perceived value for residents and delivers enhanced profitability for the property owner, whether they are investing long-term or plan to sell in a few years. Updating the units and grounds also helps protect market position for established communities competing against newer properties in their area.

Unfortunately, sometimes renovations go wrong.

Delays happen, problems pile up, and budgets get busted. The excitement of creating something fresh and new is consumed by frustration, stress, and missed opportunities. Here are 5 common renovation planning mistakes our experts have seen happen—and how you can avoid them.

1 – Making upgrade decisions without studying the market.

Always research the local multifamily housing market before making any renovation decisions. Studying what worked for nearby properties—and what didn’t work—will help you get it right and avoid making similar mistakes. What decisions delivered strong ROI, and which ideas turned out to be less valuable? A solid, accurate market survey will protect you from many different renovation mistakes.

2 – Investing in immediate splash at the expense of investment return.

Some property updates deliver an immediate visual and emotional impact, and that’s a great way to build excitement and get noticed. But will those upgrades really pay off? Will they deliver strong ROI if you’re planning to sell soon? And, if this property is a long-term investment, will those upgrades payoff, or will they become maintenance money pits? Reach out to 51Âþ»­app’s renovation experts to discuss on-trend updates that will deliver for your bottom line now and in the future.

3 – Moving forward without a clear vision.

A successful renovation is about more than checking off a list of wants and needs. The process should be informed by a cohesive vision built on good information with a specific end in mind.

• Refreshing with plans to flip?
• Investing for long-term profitability?
• Updating units to stay competitive?

Whatever the goal is, hitting that target should inform every aspect of the project.

4 – Choosing the wrong renovation contractor.

With every capital expense project, the budget is the boundary between what is possible and what is practical. That does not mean the lowest bidding contractor is always the best choice. Hiring the cheapest construction team can mean dealing with poor quality work, substandard materials, and numerous mistakes. The property manager ends up investing so much time making sure the work is done properly, other tasks are set aside in the name of “Finally Getting This Done.” Important things slip through the cracks. Avoid this renovation headache by selecting a contractor who:

• Understands the unique aspects of multifamily housing.
• Has the knowledge and experience to do it right the first time.
• Knows how to build real value into their bid.

The budget will always be the bottom line, but having a partner you can trust to do it right and treat you right is priceless.

5 – Failing to consider materials and space needs.

Renovation projects can be disruptive. The trick is to limit that disruption, for your residents and for your management and maintenance teams. Before you begin, have a plan in place for:

• Where you will stage renovation supplies.
• How much of a staging area the team will need to do the work.
• Where you will store what’s being pulled out of the updated units.

Construction scraps, especially countertops or cabinets and old appliances take up a lot of space. Broken ceiling fans and carpet remnants fill up dumpsters fast. Considering each of these factors ahead of time will allow your team to maximize efficiency while minimizing the impact of the renovation on your residents.

Did you know?

51Âþ»­app will deliver your unit upgrade supplies directly to that unit—including appliances (some restrictions apply). Coordinate with your Renovation Field Manager to have items delivered as soon as the demo is done, and the unit is ready for the new installations.

For help planning your next capital expenditure project, contact 51Âþ»­app’s dedicated Renovation Team here. Our experts will meet you at your property, walk the grounds and work through every aspect of the plan with you, so you can be certain you are moving forward with a strong, practical renovation plan in place.