(Photo credit: Matt Johnson, for Finance & Commerce)
Even as rental markets tighten, competition for the best tenants (read: the ones who aren’t newly bankrupt) remains fierce. Savvy property investors looking to attract the high-income segment of the rental population are still “piling on amenities” according to a recent article from the web site Finance & Commerce.
Along with the usual suspects—granite counter tops, stainless steel appliances, and other high-end finishes—renters are gravitating toward properties that include such conveniences as on-site fitness centers, luxurious indoor and outdoor communal spaces, housekeeping services, underground parking, and attached restaurants.
According to the article, renters want “magic” and are willing to pay for it, while property investors who are willing to make the upfront investment in creating these luxury spaces reap long-term rewards that include lower-than-average vacancy rates and rental rates that are often two or three times the local average. The Minneapolis property Mill District City Apartments, for example, is able to charge up to $2600 per month in an area where typical rent is around $900. Even more surprising?? All of the building’s 175 units are full, and so is the waiting list.