Does your apartment complex have a communal area? The right communal area can make all the difference for attracting new renters to a property and making sure they remain happy there. But what, exactly, makes communal areas so valuable, and what steps can you take to maximize that value?
The Value of Communal Areas for Renters
Let’s start by taking a look at the value of communal areas for renters. Why do people love these common areas so much?
· Aesthetics. For some people, communal areas are all about aesthetics and beauty. Looking out of your apartment window and seeing a pool with trees and shrubs around it can feel relaxing and rewarding. There’s also a bit of prestige associated with living in a complex that has robust and well-kept community areas.
· Recreation. Common areas also provide an element of recreation. After you get off work, or if you’re just bored, you can go for a stroll in the dog park, head to the gym for a workout, or just relax in the pool with a swim. It’s an opportunity for exercise and relaxation that you can’t get unless these areas exist.
· Social opportunities. Depending on the type of common areas you have, these can also afford social opportunities. Your apartment dwellers can make themselves available and start interacting with other renters in the complex. It’s a great way to get to know your neighbors, establish a better sense of security, and potentially network with important people.
· A sense of community. Most of all, common areas lend a sense of community. When people engage with others in common areas, they share a bond and feel like they’re living in a place with significance.
The Value of Communal Areas for Landlords
So what are the value of communal areas for landlords?
· Curb appeal. Well-kept communal areas have significant curb appeal. When a prospective renter sees the property for the first time, and the first thing they see is a beautiful pool or a thriving game room with tons of people having fun, they immediately get a good impression of the property. Similarly, common areas tend to look amazing with the help of professional photography. Because of this, you’ll usually end up filling vacancies faster.
· Differentiation. Common areas also allow you to differentiate your property, which is especially important in a city with a lot of competitors. If you want tenants to apply to rent your property, and not someone else’s, you’ll need some way to make your property stand out. Better accommodations are great place to start.
· Appeal to specific demographics. Communal areas do appeal to some demographics more than others, so if you’re targeting a specific niche, you may benefit even further. For example, older residents and retirees tend to find more value relaxing and socializing with other people. The same is true of young singles who are looking to mix with others in a big city.
· Justification for higher rent. In some ways, common areas give you justification for higher rent. Obviously, communal areas do require some initial investment and some ongoing upkeep; the price of managing the complex is going to rise if you have one. But you can more than make up for this by increasing the monthly cost of rent for each renter. Ultimately, this could lead you to a higher profit.
· Renter retention. Communal areas also have the capacity to help you boost renter retention. Once people get used to these common areas, and once they start establishing bonds with the other people who live in this complex, they’re going to be much more reluctant to leave. They don’t want to abandon these great institutions, and they don’t want to leave the community that they’ve helped to build.
Using Communal Areas Properly
Of course, there are good ways and bad ways to use communal areas. If you want to make the most of your investment, you’ll need to use them properly.
· Know your demographics. Not all communal areas work for all people. Before making any installations, make sure you understand your demographics specifically and you choose the right type of communal area for their needs.
· Make it comfortable. Communal areas won’t be used unless they’re comfortable. Climate control, adequate spacing, and comfortable furniture can all help you here.
· Keep it clean and attractive. Stay attentive and keep the area both clean and attractive. This will improve both your property’s curb appeal and usage rates among your residents.
With better common areas in and around your property, your renters are going to be happier and you’re going to make more money. Establishing a communal area can be a bit of an investment, in both time and money, but in the long run, it’s almost always worth that upfront cost.
