Investing in the Repositioning of a Multi-Family Property
It has become apparent in recent months that newly built commercial properties, although attractive, may not currently be the optimal choice for investors. The impact 2020 has had on the hospitality industry and workplace hybridization has sparked savvy hoteliers and office building management to convert stable, well-placed properties into multi-family dwellings.
Repositioning is breathing new life into the multi-family property market.
Multi-Family Properties are Geared Toward Millennial Tenants
The attractiveness of multi-family properties may be heavily fueled by the millennial market. While half of the boomer generation sought homeownership by the age of 34, as of August 2020, only 32% of Millennials own their homes. Whether due to economics or circumstance, this group seems to prefer the idea of renting.
Since Millennials are the largest demographic at the moment, this bodes well for investors who are looking toward the future.
The Repositioning Process for a Multi-Family Property
The amount of work required to prepare a property for lease depends on its original form. In the case of a hotel with high-end finishes, bathrooms, and other amenities, contractors might only need to install kitchens, open a few walls, or add doors to turn the structure into desirable one- or two-bedroom apartments or condos. With an office building, plumbing and other infrastructure may be required to convert space into residential units.
Cosmetically speaking, alterations might involve reconfiguring or resurfacing parking lots, painting, changing finishes, landscaping, and adding signage. This can have a dramatic effect on potential renters when they arrive at the property as well as how much they are willing to pay to live there.
On an operational front, existing tenants may need help with relocation and re-establishment. A new management company would need to be hired and techniques for increasing occupancy and adding revenue, like onsite laundry rooms, implemented.
Once the revamp is complete, a campaign to make the local renter market aware of the new development is in order.
Community Engagement Strategies
When a property is repositioned, its identity must be reshaped. Staying in tune with market trends can greatly enhance property values. Providing residents with community-centric experiences is a great way to attract a new audience to a repositioned property.
Strategies that introduce a new multi-family property to previously untapped audiences and foster community involvement include:
1. Creating Engaging Events
Until a property has a waitlist, introducing it to new groups of tenants on a regular basis is needed. By hosting original and innovative onsite events, you can keep new faces coming in. meet-and-greet opportunities or property tours for showcasing homes and amenities are excellent ways to bring awareness to a property.
2. Connecting the Property with Influencers
Influencer marketing has become an effective way to attract a target audience and drive engagement. Inventive influencers can speak directly to those you are hoping to reach with messaging. Utilizing partners your ideal tenants can relate to will help you lease your space.
3. Leverage Social Media and Your Own Email Lists
Social media is one of the most cost-effective ways to advertise. Once you have identified the ideal audience for your property, you can determine where they like to spend time online and how they prefer to receive content. Tailor your message to include topics that matter to them to encourage engagement. In addition, drip campaigns to your own email lists will strengthen the overall marketing efforts and bring further awareness to the property.
JMK Property Investment
JMK Property Investment offers a full range of services for property management and investment. We are also licensed general contractors in Miami, Florida, so we can assist you with any and all property updates, new construction, remodeling, or repositioning needs.
To learn more about our investment opportunities contact us.