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Chicago’s West Loop neighborhood is a thriving downtown area for young workers, foodies, and urban creatives who are turning warehouses into fashionable gathering places. Many of our new residents work hybrid or fully remote schedules, allowing us to structure our jobs around our community and vice versa.
We recently purchased a multifamily high-rise in the rapidly growing West Loop and made some simple, cost-friendly changes to the public spaces that the renters wanted. We shifted the spirit of our public spaces from the cool vibe of an apartment lobby to the warm vibe of an open workspace, with communal tables with charging stations and corner desks for privacy. .
Free, high-speed, password-protected Wi-Fi is available. The space is comfortable and residents appreciate having a place to work outside of the apartment.
The competition for multifamily amenities has led some property owners to become de facto cruise ship builders, equipping their buildings with yoga studios, pet runs, pickleball courts, and anything else likely to attract renters. However, renters, properties, and locations have different needs.
While upscale markets may appreciate an in-house preview room, more affordable properties want an easily accessible laundry room with plenty of dryers.
Price, location, and unit maintenance will continue to drive rental and retention rates. But amenities are a differentiator. Here’s how property managers can identify new amenities for their apartment complexes.
Know your market
Some apartment amenities never go out of style, such as ample parking and functional laundry facilities. Luggage storage lockers are the new necessity. Moreover, different markets require different amenities.
Today’s multifamily housing market spans age groups, wage levels, and workforce demographics. Urban renters want a 10th-floor fitness facility with adjustable kettlebells, gravity treadmills, and smart training hubs.
They also want a rooftop outdoor space with comfortable seating and perhaps a fire pit. Suburban renters certainly appreciate training equipment and fire pits, but they also want outdoor space where their kids and pets can roam and play.
Luxury renters tout wellness spas and craft rooms, while mid-priced renters enjoy the amenities of pools and delivery rooms. Young renters who work remotely want coworking space within their own building. Retirees (there are more than 7 million renters age 65 and older in the market) are looking for the privacy and community that a built-for-sale property provides.
No single collection of apartment amenities (with the exception of package rooms) can satisfy all demographics. Property owners are required to conduct inspections at least once a year, as well as upon move-in and move-out, in order to provide tailored services to residents.
stay focused on technology
The new coolness of apartment complexes is “smart.” Wi-Fi is required throughout the building. According to a survey by the National Multifamily Housing Council, 90% of respondents said they would not rent a room without high-speed internet. Part of the reason is that residents are using Wi-Fi for more than just work and leisure.
Smart home technology is predicted to grow to a $633 billion market by 2032 as people manage their living spaces with smart locks, home appliances, Bluetooth-enabled thermostats, and energy-saving technologies. Renters want access to this technology as well, especially those who value the safety and sustainability that these products promote.
Technology offers more than opening doors with your phone. Residents can pay rent, schedule maintenance, and receive delivery notifications via the app. Property owners can include outside vendors to build these apps.
Consider contracting with a cleaning company, meal delivery or rideshare service, or concierge vendor to provide residents with a robust portal of providers. Such apps can also help property managers navigate homes, monitor water and utility usage, and alleviate noise complaints. Peace is an underrated apartment amenity, and technology can help you manage it.
let’s go outdoors
Renters want to live outside of their living space, especially since they work from home. This intersection is unique, and multifamily operators must consider the balance. Renters want more technology to personalize their indoor living experience, but they also crave communal spaces and the outdoors.
“Collaborative coworking spaces and amenities that make working from home more convenient are becoming increasingly popular,” Lindsey Jacobs, senior vice president of marketing for RPM Living, told Multihousing News. “Residents continue to seek opportunities to connect and network with each other, and providing the space to do so is key to resident satisfaction.”
Apartment complexes utilize outdoor space beyond pools, playgrounds, and barbecue facilities. Some owners have installed pickleball courts and gardens as space allows. Rooftop terraces with fire pits are popular in urban markets. Residents with dogs appreciate the runs and rescue stations.
Looking for a new trend in outdoor amenities? Try beehives. Best Bees installs and manages hives in apartment complexes, offers tours and events, presentations about bees and sustainability, and, of course, branded honey.
create an experience
Research shows that renters are more likely to renew at a higher rate and be willing to pay higher rent when they have friends in their home. This is called the “friendship factor” and it does exist. Property managers help foster community engagement by sponsoring events and experiences that bring people together.
Our facilities encourage managers to host events on a regular basis. Weekly breakfasts, barbecues, happy hours, and more. It may also be a seasonal event. One of our facilities held a pumpkin carving contest on Halloween. It can also be a service-oriented event, such as a clothing drive for a church or support center or a food drive for a local pantry.
“Community and a sense of belonging are becoming increasingly important to residents,” Sharon Hatfield, COO of Cushman & Wakefield’s Multifamily Asset Services Americas division, told the National Apartment Association. “Investing in these areas has resulted in measurable improvements in resident retention across our facilities.”
In multifamily housing, the amenity race is more competitive and stranger than ever. We really don’t know where this trend is going to go. Could we have predicted that intravenous fluids and Botox treatments would become part of our multi-family services? What about rock-climbing walls, podcast studios, or private subway entrances?
The key for property managers is understanding their residents and the market. Once you’ve earned your cat’s loyalty by grooming them, it’s time to open your own cat salon. If your renter likes stargazing, buy a telescope. However, multifamily property managers also need to be aware that trends are fickle and fads come and go. Build a community around your amenities. Not the other way around.
Michael H. Zaransky is the founder and managing principal of MZ Capital Partners in Northbrook, Illinois. The company was founded in 2005 and deals in multi-family housing.
