Renting a home doesn’t always mean fear of commitment and responsibilities. Most choose it because of practicality. It is a flexible living arrangement that allows people to stay as long as possible and leave when necessary.
According to the data updated by the National Multifamily Housing Council in 2020, 37% of renters live in apartments, and about 44.1 million American households are renters. These numbers are telling, which means that there are more underlying reasons why people nowadays are consciously choosing to rent rather than buy a permanent home.
What’s great about renting an apartment is that you don’t have to worry about looking for someone to fix your sink when it gets clogged or when there’s a leak in your home. Your landlord is one call away. He or she will take care of the maintenance for you, for no additional fee. Just saving you from stress is reason enough to make living in an apartment very appealing.
A study made by the Joint Center for Housing Studies of Harvard University found out that “most of the recent growth in renters has been among households with high incomes.”
The center attributed this shift to the high cost of homeownership. The pressure of paying a sizable down payment for a home is still heavy on the pocket, even for those who have a relatively higher income. Security deposits for apartment rentals deal a much softer blow on household earners’ pockets, which is why they choose to rent instead.
Even without being a millionaire, when you live in a good apartment building, you get to experience having a pool and fitness center in your backyard.
Living in an apartment complex with luxury amenities such as these may charge you a little fee, but you would not feel it because it is included in your monthly rental. Also, this fee is nothing compared to expenses you will incur when building a pool or buying gym equipment for your own home.
The Prospect of Owning an Apartment Complex
Knowing these reasons is a good study of how you can improve business if you’re ever planning on venturing into apartment rentals. For example, if people in your area are looking for amenities, building a complex that provides the market’s needs is wise. Constant maintenance is also something that a good apartment building should have.
Aside from these, there are other factors you might want to consider when building an apartment complex.
Anyone involved in real estate would know the importance of location when choosing a property. Again, one of the advantages of renting out is having the flexibility to be where you want to live, when you need it. Most people would want to live somewhere closer to the lifestyle they want to have.
Students need to be closer to universities. Those renting for business or work want to live near the central business district. Those who want a city lifestyle will probably want to move to the heart of the city, and some practical ones want to be near grocery stores, restaurants, and miscellaneous shops.
By knowing your location, you also get to know the profile of your future renters. Based on these profiles, you can also guess what kind of service and amenities you can offer, how much you can charge, and how to market your space.
An apartment is essentially a shelter– a basic need. That is why you have to make sure that the home you provide will protect households from seasonal changes. Just as basic as providing air conditioning, heaters, and insulation must be on top of your list of must-haves when constructing a residential space.
The truth of the matter is, when you live in a building with other people residing in it, security is something you will worry about. That is why landlords need to provide security guards and install CCTV camera’s in hallways and common spaces, to give a semblance of safety to tenants.
IT’S MORE ABOUT THE BUDGET
The bottom line is that budget is the most important factor both tenants and business owners consider regarding apartment rentals. To even start a business, the budget will be your top concern, and more often than not, a loan is needed for constructing apartment buildings.
Also, building owners should take into account that people choose to rent due to budget constraints. Hence, you should strike a balance between giving renters a justifiable monthly due while allowing you to still gain profit.