According to the FRED Economic Data website, the number of rental vacancies appears to be forming a bottom. They have been doing so since 2015. That indicates that the renting population is not currently expanding at the same rate it had been. The National Apartment Association’s (NAA), 2018 Operating Income and Expenses Survey, has also reported a slowing in the growth of new households entering the rental market.
To put it simply, competition is getting tougher for owners of multi-family properties when it comes to attracting new tenants. As tenants move on and leasing offices have to move inventory, leasing offices have to lower prices or give additional incentives to attract tenants that can pay the prices they are asking.
According to the NAA recent increases in renter populations come from people over the age of 65 and households with incomes over $100,000. The NAA also mentioned that generation z might enter the rental market soon when they graduate college. That said, how are you going to attract the highest quality renters at the premiums that you need?
Amenities are the garnish on that Michelin Star plate, you can have the best chicken on the block, but if people don’t want to eat it with their eyes, they will go down the street. Making sure that you have well put together amenities like fitness centers are going to make people want to live at your multi-family housing property over others. Next, to simply upselling space to pets, fitness centers had the highest return on capital in 2017.
A fitness center brought in on average 13% more revenue than properties without them. In addition, 46% of renters were willing to pay more for fitness centers that offer classes. The data goes to show that getting amenities that people want will pay, and your ROI will be better when they are well planned out.
If your multi-family housing property does not have a fitness center, you will increase your revenues by approximately 13% by installing one. If you install a well thought out center that offers classes, your ROI will be higher. With the number of new renters dwindling it’s up to you to attract as many high-quality tenants s you can. Contact Fitness & Exercise Solutions today or more information on getting your own fitness center.