Many of the buyers closing on units in recently completed luxury towers across South Florida are investors. Some are domestic and some are foreigners. They all share the same plan: renting the units out until the time arrives to execute an exit strategy. But renting a new condo can be a challenge for two reasons:
1. Hundreds of new condos are hitting the rental market simultaneously.
2. Hundreds of new luxury rental units are either nearing completion or under construction.
This is creating intense competition among future landlords. Here are some tips to help investors rent their units faster and generate income sooner rather than later:
1- If the newly-built unit comes ‘decorator ready’ – which means the floor, walls, closets, etc. are not finished – you will need to paint the walls, add flooring and build-out the closets. A solution: weeks before the closing date, recruit a general contractor to start planning the build-out of the unit. This way, the GC will start work as soon as the unit becomes yours, saving you weeks of ‘waiting time’ and placing a tenant in the unit much faster.
2 – For the walls, stick to neutral colors. Stay away from bold or ‘white,’ which will make your unit seem dull and potentially scare away tenants who may not have the creativity to envision the unit as their home.
3 – Basic Standard Materials: if your unit requires a build-out, do not use the same type of materials that you would install in your own home. Your tenants are not going to treat it with the same quality of care, so don’t overspend. For flooring, we recommend porcelain tiles because they are stylish, durable and low maintenance. They also work well in balconies and blend with the interior flooring.
4 – Invest in a practical built in closet system throughout the unit.
5 – Most new units come with the kitchen and bathrooms already finished. But if you plan to upgrade the kitchen, avoid white cabinets. Earth tones are ‘in’. Also consider upgrading fixtures such as door handles, faucets, etc.
6 – Open floor plans: if the unit seems small, consider knocking down walls to open up the floor plan, which usually involves combining the kitchen, dining and living areas into one large space. This will increase the natural light and create the perception of increased square footage.
For more ideas, give us a call. We have some great concepts to build out new condos and modernize older units.