Providing the right community amenities in a California rental property will impact what is earned, how long units are on the market, and what the long-term ROI grows to be on a per-unit basis and on the building itself.
What kind of amenities will attract tenants the most?
That’s going to depend on a lot of factors, and while we’re taking a general look at community amenities today, we welcome any rental property owner to contact us at Bell Properties for a more customized approach to planning features and activities that will attract tenants to their unique rentals.
The Right Amenities Making the Right Difference
Amenities matter, not only to residents, but also to earnings and profitability.
Community amenities are features that enhance the overall living experience for residents. These can range from tangible facilities like swimming pools, fitness centers, and parks, to less tangible services such as security, concierge services, and social events. In California’s competitive rental market, these amenities are not just "nice-to-haves"—they can be pivotal in attracting and retaining tenants.
This is what the right amenities can do:
1. Increase Property Appeal
Fewer days on the market leads to better cash flow. Avoid long vacancies by providing properties with modern and well-maintained amenities. These rental homes are more attractive to prospective tenants. A well-equipped gym, a refreshing pool, or a relaxing communal lounge can make a property stand out from the competition. This increased desirability often translates to faster occupancy rates and reduced vacancy periods, which are crucial for maintaining a steady cash flow.
2. Raise Rental Rates
Tenants are willing to pay a premium for the convenience and lifestyle associated with quality community amenities. According to a report by the National Multifamily Housing Council, properties with high-end amenities can charge up to 30% more in rent than those without. By investing in amenities that cater to a large target demographic, it’s easier to justify higher rents, leading to improved profit margins.
3. Improve Tenant Retention
Amenities contribute to a sense of community and enhanced quality of life for residents, which can lead to improved tenant satisfaction and retention. Long-term tenants reduce turnover costs and minimize vacancy losses, contributing to a more stable income stream.
4. Enhance Property Value
The presence of attractive amenities can also increase the overall value of a property. When it comes time to sell, properties with sought-after features can bring in higher selling prices, thus providing a better return on an investor’s initial investment.
In a competitive and fast-moving California rental market, community amenities can serve as a differentiator for quality rental properties. Investors who focus on unique or high-demand amenities can carve out a niche and attract a dedicated tenant base, even in competitive areas.
Not sure what specifically tenants in a local rental market are looking for? We know. Contact us at Bell Properties.
Expenses and California Apartment Amenities
It’s important to choose the right amenities, otherwise the costs can surpass the benefits.
Not all tenant amenities offer the same return on investment. The key is to choose amenities that align with the needs and preferences of a property’s majority of tenants. When we’re advising investors and owners on community amenities, we’re thinking about the tenant demographics in a specific building. Are most of them dog owners? We know a dog park is a great idea. Are there a lot of remote workers? Maybe a business center or a co-working area is a better investment. A building full of children will easily demand a playground.
By staying informed about current rental trends and following tenant demands, we’re able to decide which amenities are worth investing in, whether it’s for a duplex or a 15-unit building. Our team can also assess the cost of implementing and maintaining an amenity against its potential to increase rent and property value. We focus on those that offer the highest ROI.
Amenities will require upkeep. If that’s a barrier, contact us at Bell Properties. We can help with strategies such as:
Regular Inspections. By conducting regular inspections to identify any wear and tear or potential issues, we can take care of those issues before they become serious problems. This proactive approach can save costs and keep amenities in optimal condition.
Preventive Maintenance Plans. Every property we manage comes with a preventive maintenance plan, and we’ll also create one for each amenity. This is likely to include routine servicing and repairs, which will extend the lifespan of amenities and prevent unexpected breakdowns.
Budgeting for Amenity Repairs. A portion of the maintenance budget must be dedicated to repairs and upgrades. Being financially prepared to address maintenance issues promptly can minimize disruption and maintain tenant satisfaction.
Tracking Tenant Feedback. Our goal is to provide avenues for tenants to easily report issues they encounter with amenities. This will allow us to respond quickly to their concerns and improve the overall living experience.
Bell Properties already works with experienced maintenance professionals, and we’ll also partner with providers who are familiar with the specific types of amenities on the property. Skilled personnel will ensure that maintenance tasks are executed efficiently and effectively.
Which Amenities Deserve To Be Considered?
There are easy amenities that appeal to all tenants. Fitness centers or gyms. Basketball courts and pools. A clubhouse with a game room or a library and a big screen television for Super Bowl games and World Series playoffs. All of these are good ideas, and when there’s a demand for specifics, it’s important to listen to tenants and what they’re looking for.
Here are a few other community amenities that we’ve found make a big difference in a property’s appeal and profits:
Pet-Friendly Amenities
Dog parks are a big deal. Providing plastic bags and trash receptacles are ideal so tenants can keep the area clean. It’s important that the area is fenced, and sometimes separating a space for big dogs versus small dogs is necessary.
Co-Working Spaces
More and more California tenants are working from home. Sometimes, a home can feel pretty small, though, and tenants will go in search of coffee shops and co-working spaces. It’s a good idea to provide one. By setting up a room with good internet, drinking water, and maybe a coffee machine, we are giving prospective tenants a good reason to choose our properties when they’re considering their work/life balance.
Parking
Jockeying over a parking space is never fun for tenants, and a great amenity that tenants always appreciate is ample parking. Fewer and fewer California tenants are willing to park on the street. We want to provide a dedicated parking area, and we want that area to be secure.
Even better is assigned parking. When tenants have a spot that’s all theirs, they’ll feel better about where they leave their car. We also want to provide plenty of guest parking that’s well-marked.
Security
Simple security measures are amenities that always attract good tenants. Secure entry to the building is essential, and we also make sure that every entryway is well-lit. We like key fobs instead of metal keys that can easily be stolen or copied. We like digital keypads and smart locks. Investing in security cameras and ring doorbells is not a bad idea.
California Property Management and Community Engagement
Amenities should also encourage community.
Gathering spaces are important. Outdoor courtyards, for example, or a communal kitchen area.
For a more positive rental experience and a stronger sense of community, we believe in cultivating engagement. That’s generally going to encourage communication, which we are happy to facilitate through our full-service management at Bell Properties.
To effectively grow communication and inspire engagement among tenants, it’s a smart idea to establish regular channels for interaction and feedback. Initiatives such as community newsletters with social calendars and list of activities, social media groups, tenant portals, and email chains have proven to be incredibly beneficial in introducing tenants to each other and inspiring them to create their own sense of community.
All of these can facilitate updates, announcements, and communal discussions. Organizing social events, whether seasonal gatherings, workshops, or informal meet-ups, can also play a crucial role in building social ties and creating a supportive network.
A lot of landlords and rental property owners are unsure of how to encourage open dialogue and provide opportunities for connection among tenants living in a building. We can facilitate that expertly, so contact Bell Properties for some help. We know that nurturing an environment where tenants feel heard and valued can bring some very positive benefits, from tenant retention to on-time rental payments.
Eventually, this type of interaction and community support will become intuitive to tenants, and the right community amenities are necessary to establish and sustain that.
Landlords and even property managers don’t have to be responsible for proposing coffee hours and potlucks or happy hours within a community building. As long as we’re providing the right amenities and an ideal setting, tenants will take it upon themselves to reach out to their friends and neighbors. That’s when we know we have succeeded.
