More than one-third of the nation currently lives in rental properties, with that number only expected to grow over the next few years. Yet, renter satisfaction among this population is steadily declining. Approximately one in five renters, or 19%, say that they are dissatisfied with their landlords. Interestingly, much of this dissatisfaction stems from subpar services, which may include property amenities in larger multi-family housing units. Research from the National Tenant Survey also suggests that “the quality of landlord services is likely to be the primary factor in explaining variation in tenant satisfaction and other factors are generally a secondary influence.”
In other words, adopting newer, more efficient rental property services may help improve satisfaction and ultimately increase yearly revenue.
To help you get started, here are the most effective rental property upgrades for attracting and keeping tenants. These will help you maximize property value, attract tenants, and boost resident satisfaction with your living services and amenities.
What Are the Smartest Rental Property Upgrades?
“Smart” rental property upgrades are improvements that increase tenant satisfaction while also benefiting the property manager. While certain “smart” improvements may include artificial intelligence systems (e.g., thermostats or doorbell cameras), they aren’t required to make the best upgrade for your rental property.
Here’s a case in point: While many upgrades and tools are available, only a select few provide a better return on investment. For example, you may spend thousands of dollars improving the look of outdoor spaces with flowers and trees, but it may not lead to tenant retention or satisfaction. You could have instead invested the money in a commercial laundry room, for example, which would have created an additional revenue stream and made tenants happier.
The numbers don’t lie; renters who are satisfied with their property manager:
- Are 73% more likely to renew their lease in general.
- Are five times more likely to recommend them to others.
- Are 71% more likely to renew their lease when they’re satisfied with maintenance issues, which is something that better, more efficient upgrades can help lessen or eliminate altogether.
Specifically, then, a “smart” rental property upgrade is three things: 1) a tangible improvement to your property that benefits your tenants and would increase their happiness, 2) a physical or tangible tool that adds significant value to a property, and 3) an intelligent addition to your property that also benefits you as the owner. For example, this could be an additional revenue stream, reduced maintenance, or higher security that lowers your insurance premiums.
The Most Effective Rental Property Upgrades for Tenant Retention
Here’s a list of the smartest rental property upgrades for tenant retention to get you started.
1. Durable Surfaces
Durable surfaces refer to all touchpoints in a rental space that could become tarnished or worn over time. For example:
- Flooring: Up to one-third of all homes contain some element of carpeting, as it’s often a practical, cost-saving material for spaces like bedrooms, living rooms, and similar areas with low traffic. However, carpet’s low up-front cost is often greatly exceeded by its maintenance costs. Steam cleaning, spot repair, and removing old carpet can become an exorbitant waste of time and money. Additionally, many tenants appreciate the look and durability of tile or vinyl. Replacing carpet with hardwood flooring has one of the highest ROI improvements of any rental upgrade.
- Countertops: Over time, cheaper countertop materials like laminate or Corian can become scratched, stained, burned, and otherwise chipped and worn down. Replacing this with natural stone, granite, or another material type will greatly appeal to buyers. Moreover, they’re longer lasting and require less maintenance. This requires much less work from your maintenance technicians and may cost you less over time.
- Storage Solutions: These include cabinets, shelves, and closets. Cabinets with peeling veneer, sagging shelves, or broken hinges look unimpressive to prospective renters. Lower-quality storage solutions also tend to deteriorate faster with each successive tenant. Upgrading to solid wood or high-quality MDF cabinetry, sturdy closet organization systems, and brushed nickel or matte black finishes can improve durability, increase appeal, and improve tenant happiness over the long haul.
2. Smart Systems
According to a Rent.com survey, more than 80% of renters want at least one smart home device in their apartment. This may include:
- Access security systems
- HVAC and climate control systems
- Lighting and light management
- Water and gas leak detection
Smart systems not only improve the perceived value of a rental property, but they can also increase its actual value. For example, more efficient, AI-powered HVAC systems could last decades longer than traditional machinery. Additionally, leak detection, security systems, and even temperature controls could save you thousands in insurance premiums over time.
3. Self-Operated Commercial Laundry Equipment
Modern automated laundry systems enable property managers to enhance amenities, streamline operations, and improve resident satisfaction. Case studies suggest that these systems can help multi-family housing operations by:
- Reducing operational costs
- Improving tenant experience
- Supporting green initiatives that engage tenants
Moreover, self-operated laundry equipment produces an additional income stream. This may improve your revenue by 80%. Coupled with water-saving and energy-saving machinery, you could improve your tenants’ quality of life while cutting back on monthly expenses and increasing your income.
How Rental Property Upgrades Improve Tenant Attraction and Retention
While several smart rental property upgrades are available on the market, few are as efficient as self-operated commercial laundry equipment. The right systems help you improve overall tenant happiness while also improving the capabilities of your housing units.
For example, SelfOp Laundry can help you:
- Increase revenue streams by 80%
- Save water and energy
- Automate billing with modern payment technology
Discover how SelfOp Laundry’s innovative laundry solutions can transform your property’s amenities and operational efficiency. By choosing our clients’ equipment, you can attract new tenants, increase satisfaction, and boost your property’s value. Contact us today to learn more about how these advanced systems can support your property management goals and deliver long-term benefits. Let us help you create a more reliable, cost-effective, and eco-friendly laundry experience for your residents.
