Luxury rentals are an excellent way for investors to target a wealthier tenant group and charge more than they could in a standard rental. Of course, this type of building project will also cost more for you, the investor, in order to meet all of the demands that make it a luxury rental property. However, if the right choices are made, the potential is certainly there to get an excellent return on investment. If you’re investing in a build-to-rent and considering marketing it as a luxury rental, below is a list of things you should consider. While large multi-unit residences would include things like swimming pools and gyms, for the purposes of this article, let’s consider luxury details for 1-4 unit rentals specifically.
Since you won’t be offering things like pools, gyms and doormen in a 1-4 unit rental, an excellent way to include luxury is in details and finishes. This means using quality hardwood floors in units, as well as stylish, contemporary cabinetry in kitchens and bathrooms, and solid wood doors throughout with good quality hardware. For kitchens and bathrooms, consider high-end natural stone like granite or marble. Or better yet, for luxury with added durability at a better price point, quartz might be the way to go.
Incorporating top-of-the-line appliances is another way to show tenants you’re serious about your luxury rental. Stainless steel is always an excellent choice, and you might consider bonuses like ovens with warming drawers, garbage disposals, or fridges with built in filtered water and ice dispensers. In-unit vented washers and dryers are becoming a standard in luxury rentals as well. Smart technology is another excellent way to elevate a rental; consider implementing zoned heating and cooling systems that each tenant can individually control, such as Nest by Google.
When thinking of luxury features, don’t forget to extend them to common areas as well. For example, things like video intercom or a virtual doorman that enables deliveries to be left in a central package room. Individual covered parking spaces are also highly coveted by tenants in luxury rentals as they add both convenience and security. Bike storage or other large dedicated storage areas that are either included in the rent or available for a small monthly fee are another simple feature to consider.
And even in small rental properties with 4 units or fewer that lack a gym or swimming pool, other amenities can be offered to make the complex feel more luxurious. For example, consider including terraces, patios, and even common areas with landscaping, water features and barbecues. Perhaps a large roof deck or even a hot tub or steam room can be implemented in your small build-to-rent to attract tenants. Finally, consider things that are less tangible but make a big impact, like implementing overall policies that might appeal to renters in the luxury market such as a building that is pet friendly but smoke free.
Luxury rentals should offer high-end amenities and have a modern feel. Following these guidelines can add value o your project, earning you a greater return on investment, as well as attract tenants who care about the property.