If your multifamily dwelling is outdated and you're having difficulty attracting tenants, renovating a condo or several units can help. As a property manager, you want your condo complex to look contemporary, clean and well-cared for. Here's everything to know about remodeling the space.
Things to Keep in Mind When Renovating a Condo
Before diving into your condo remodeling project, consider a few essential items. One misstep — like selecting the wrong contractor or finishes — can lead to significant damage, unforeseen problems and higher costs.
1. Setting a Realistic Budget
Apartment or condo renovation costs vary by location. For example, a condo in New York City or Miami will generally be more expensive to remodel than one in Kansas or Oklahoma. On average, you could spend $25 to $60 per square foot or upward of $200 on the high end.
Renovating an entire one-bedroom unit costs about $18,000 to $45,000, while a two-bedroom unit costs anywhere from $25,000 to $60,000. Of course, remodeling specific areas — such as a bedroom or a bathroom — might not require a large budget. Ultimately, it depends on how expensive the features and finishes are.
2. Finding the Right Contractor
Even if you're confident in your ability to tackle specific projects, it’s best to hire a professional. When searching for a dependable contractor, you'll want to ensure they have ample experience with planning and drawing, developing project specifications, working with third parties and staying within budget. They must also hold a general contractor’s license and several types of insurance, including general liability, property damage and commercial property.
Ask for a portfolio of past projects showcasing the contractor's work, read client testimonials and inquire about references. This will give you better insight into the contractor's reputation and skills for renovating a condo.
3. Permits and Approvals
Minor projects like painting and laying new floors don't require a permit. However, you'll need to obtain authorization from your city if you're planning structural changes to the unit.
Depending on the project scope, condo property managers in Miami might pay an average of $450 and $700 for permitting — a cost you'll need to factor into your budget. While the waiting process may feel like a setback, it's essential to be approved before renovating a condo.
Likewise, you may need approval from your condo association's review committee, as they could have other rules and regulations for remodeling.
4. Design and Functionality
When planning a renovation, put yourself in your prospective tenants' shoes. What layout would be most functional for you? What type of aesthetic feels contemporary but timeless? Design entails color palettes, finishes and how a room layout will accommodate furniture. Conversely, functionality is how practical the space is for occupants, including flow, optimized storage and multifunctional areas.
Property managers might turn to Miami's unique architectural style to inspire their condo renovation. Due to its vibrant culture and history, many of the city's structures lean toward Art Deco, Tropical Deco, Mediterranean Revival and Tropical Modernism. Integrating open floor plans, natural light and coastal themes will also appeal to renters and buyers.
5. Long-Term Value
Upgrading condo units for a refreshed look is one thing, but you'll want the changes to deliver long-term value. Energy efficiency projects and sustainable materials are prime examples, offering immediate and future returns through utility savings and a lower environmental impact.
Likewise, with so many people working entirely remotely or in a hybrid schedule, a designated office space will reflect evolving tenant needs.
You'll also want to consider your renovations' return on investment (ROI). For instance, a major kitchen remodel has an ROI of 49.5%, while a bathroom remodel has a 73.7% ROI.
From Start to Finish: How to Renovate a Condo Property
Property managers must carefully plan their condo renovations from start to finish. With the essential considerations in mind, they should follow through on the following pre-remodeling process:
Defining the scope, final budget and timeline of the project
Selecting a reputable contractor to do the work
Checking to see what the necessary permits and approvals are
Informing other residents about the upcoming renovation and possible disruptions
While renovating a condo, you should oversee the work to ensure it follows the plans and stays on schedule and within budget. If you have concerns about the quality of work, address it with the contractor immediately to resolve the issue. Also, update residents on the renovation's progress, including changes to the timeline.
Your work as a condo property manager isn't finished without a final inspection. Walk through the completed condo to ensure everything meets your expectations. You may hire a professional inspector to check the building quality and codes. List anything concerning or items requiring touch-ups.
Be sure to save all project documents, including contracts, warranties and permits. Additionally, it's helpful to ask existing and new residents for feedback on their experience, whether they felt disrupted by the construction or are satisfied with the renovated unit.
Give Your Miami Condo Contemporary Appeal
An updated condo will attract new occupants and, in some cases, justify rent or price increases. Quality tenants may be more willing to sign a rental agreement for a newly renovated unit. Invest in your condo remodel wisely and enjoy the returns for years to come.
Evelyn Long is a writer that specializes in housing market trends. She is also the founder of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other sites like the National Association of Realtors and Realty Executives.