In the landscape of real estate investment, 2023 has brought forth a profound shift in priorities for both tenants and investors. Gone are the days when multifamily properties were evaluated solely based on square footage and amenities. Today, savvy real estate investors recognize that the value of their properties is linked to the well-being of individuals and the vitality of their communities.
As we navigate through this new era, it becomes evident that a property’s success hinges on its ability to cater to the holistic needs of its residents. Whether you are a seasoned investor seeking insights into the latest trends or a newcomer exploring the potential of multifamily properties, understanding this relationship is essential for making informed decisions in today’s market.
Join us as we explore the emerging trends and impact of individual and community well-being on multifamily real estate values, paving the way for a future where thriving residents create thriving investments.
Renters are Willing to Pay More For a Great Experience
In recent years, the demand for good living experiences has risen significantly, not only for high-quality products and services but also for a sense of community and purpose in
daily life. A recent article published by Forbes found that 58% of people are willing to pay more for better customer service, and 70% are willing to pay more for a convenient experience!
Seek opportunities to volunteer and improve their neighborhoods
Consider it important to grow their network and socialize with neighbors
Value living in an area with thriving local business
A study comparing renters with above-average apartment amenities and renters with above-average apartment amenities who are highly satisfied with their communities found that the residents who were highly involved and satisfied with their communities were more than twice as likely to renew their leases!
Benefits of Thriving Multifamily Communities
Renters’ increased satisfaction and willingness to renew their leases have profound and far-reaching implications for property owners. Building thriving communities goes beyond providing a roof over their heads; it is a strategic investment that pays off in multiple ways.
Reduced Turnover Costs
- Longer lease renewals lead to reduced turnover rates, which means property owners save on expenses related to marketing, advertising, and preparing units for new tenants.
Lower Vacancy Rates
- The high demand for units in such desirable neighborhoods results in lower vacancy rates, ensuring that property owners experience minimal periods of unoccupied units.
- When potential tenants hear about the thriving community and the positive living experience from current residents, they are more likely to lease units in the property, leading to increased demand and reduced marketing costs.
Increased Tenant Retention
- Happy renters are more likely to become long-term tenants, resulting in higher retention rates.
Enhanced Property Value
- As communities flourish, property values in the area often grow, offering property owners the potential for higher returns on their investment when it comes time to sell or refinance the property.
Premium Rental Rates
- Renters are often willing to pay a premium to be part of a community that enhances their overall well-being and quality of life.
Investing in building a sense of community, fostering individual well-being, and catering to the holistic needs of renters pays dividends in the form of reduced turnover costs, increased tenant retention, premium rental rates, positive word-of-mouth, enhanced property value, and lower vacancy rates. Property owners who recognize the importance of thriving communities position themselves for success in the competitive real estate market of 2023 and beyond.
Key Quality of Life Factors
In real estate investing, the focus on enriching quality-of-life factors in multifamily housing has become increasingly significant. Factors such as amenities, education, parks and open spaces, and community relationships play a pivotal role in creating thriving, sustainable communities. They not only enhance residents’ living experience but also foster a sense of belonging and mutual support. By prioritizing these aspects and continually seeking ways to improve them, we can better serve our communities and our investors.
Amenities play a central role in enhancing the appeal and livability of multifamily housing. They enhance residents’ lifestyles and add value through comfort and convenience. Amenities can include anything from shared common spaces, such as pools, fitness centers, and outdoor areas, to the availability of services, such as regular maintenance and repairs.
Quality schools significantly influences a community’s appeal, making it a crucial factor for multifamily investors to consider. High educational standards in local schools attract families seeking a quality learning environment for their children, leading to higher occupancy rates and increased rental income. Furthermore, quality education is linked to lower crime rates within a community. Well-funded and high-performing schools offer opportunities and support for youth, reducing crime by providing positive alternatives. These lower crime rates enhance the neighborhood’s appeal, creating a safer and more desirable living environment.
Parks & Open Spaces
Parks and open spaces can significantly enhance multifamily real estate values. Well-maintained parks and open spaces are a positive indicator of the quality of life in the surrounding area, leading to increased property values. Supporting local parks and open spaces can boost the value of multifamily real estate.
Community Experiences & Relationships
The strength of a community within and around a multi-family property holds tremendous potential to impact its overall value. Property owners can significantly enhance a property’s value by leveraging community relationships with local businesses, organizations, and residents. In essence, the path to elevating the value of multifamily real estate lies in cultivating a strong and vibrant community. As property owners invest in fostering relationships and connections within their communities, they not only enhance the quality of living for existing residents but also position their properties for long-term success in the competitive real estate market.
Building Beyond Business
At Wilkinson, our unwavering focus on creating human flourishing and thriving communities at our properties is deeply ingrained in our core values. We believe that real estate is not just about constructing buildings; it is about shaping environments where individuals can truly thrive in every aspect of their lives. Not only do we seek to physically and operationally improve apartment communities, but we also aim to strengthen the people and the communities we work with.
Over the years, our leaders have directed both charitable giving and leadership efforts to agencies and community stewardship organizations, including YWCA, Rotary, Red Cross, Pacific Northwest University of Health Science, Salvation Army, Fulcrum Foundation, and a wide variety of schools, churches, clubs, and sports teams. To become more community-driven, we now involve all team members in the decision-making process. Teams are formed to identify local agencies that significantly contribute to their communities across the country. Each team selects leaders, a team name, and causes to focus on. Grant requests are submitted to a review committee to ensure alignment with our company’s values, a demonstrated commitment to supporting residents and community members, and no direct benefit to Wilkinson or its team members. This inclusive approach results in the selection of a diverse range of agencies aimed at serving people and making a difference in their communities.
Thriving Multifamily Communities
As part of our dedication to creating thriving communities, we diligently add or update outdoor and indoor amenities that cater to our residents’ diverse needs and preferences. We may include amenities such as a pet wash, an updated fitness center, co-working areas, or community picnic areas. Through these thoughtful amenities, we aim to create spaces where our residents can connect, relax, and thrive, ultimately elevating the overall living experience at each property.
By nurturing a strong sense of community, fostering social connections, and investing in purpose-driven initiatives, we are dedicated to crafting living spaces that elevate the well-being of our residents. We understand that when people feel fulfilled and experience a genuine sense of belonging, it leads to greater satisfaction and long-term success for our properties. Our 360 Impact approach transforms multifamily properties into dynamic hubs where human flourishing takes center stage, empowering our residents to live their best lives.
As the demand for quality, convenient services and thriving communities continues to rise, savvy investors recognize the tremendous value in investing in the communities around them. By actively engaging with and contributing to the betterment of these communities, we not only elevate residents’ living experiences but also secure the long-term success of our investments. Embracing a holistic approach that goes beyond mere financial gains, we can build purpose-driven environments and create spaces where individuals can flourish. As a result, our investments not only maintain high value but also yield greater returns, both in terms of financial gain and the positive impact they make on the lives of the people they serve. In this new era of real estate, investing in thriving communities has become a powerful driver of success, transforming investments into powerful catalysts for positive change.