The world of real estate is such an attractive industry because it can cater to a wide spectrum of professionals across different fields. It can be home to architects, engineers, realtors, contractors, interior designers, and so many others.
It’s also an industry that can thrive in perpetuity because there are always people looking for new homes, planning to renovate, or finding an investment property. Houses, apartments, and condominiums — all these have been sprouting from the ground and are awaiting the arrival of their owners.
That’s why choosing to enter the industry by buying an apartment building can be a wise investment. But you can’t just buy any building without a target market for potential renters in mind. You have to take the factors that apartment-hunters usually consider and use those to establish your property. Factors such as:
Location
The location of the apartment is one of the most important factors that people looking for a place to rent consider. This is because most people who contemplate renting apartments are doing so out of convenience and accessibility.
For instance, if the renter is a couple with small kids, then they would want an apartment that is in a safe part of town so that their kids will be in less potential danger. They might also want an apartment near a school district, thus making going to classes easier.
When you’re pondering the location of your apartment building, consider your target market and their potential interests as deciding factors. This will make attracting the right market easier for you as a property owner because your renters will consider your apartment building as their new home.
Price
An apartment’s price can play a big role in a potential renter’s decision-making process, especially if they are running on a tight budget. Some apartment buildings are too posh, which means high prices, while some are just passable to be a place to live in.
The price you set for your rental spaces will also dictate the market that you will attract for your business. Another factor that can contribute to your properties’ price is the amenities that you will offer within the building.
For instance, The Masonry offers its residents access to their fitness center, outdoor pool, and fire pit combined with their rent price. So even if the rental fee is pretty expensive, the residents don’t feel like they are being scammed out of their money because they get to enjoy the amenities offered.
As a property owner, you should heavily consider the price you set for your apartments. The rent should be within your target market range, and it must not include unnecessary fees or hidden charges. Find a reasonable rental fee that is affordable for your potential renters while still giving you enough profit.
Accessibility
Much like the location of your apartment building, the accessibility to different establishments and transportation modes is an influential factor as well. People are more likely to rent an apartment in an area near their place of work or at least accessible to public transportation.
Most properties near food strips and commercial establishments are usually pricier compared to those in farther locations. But it can be a worthwhile investment because people like the convenience of living near food outlets or shopping malls.
When choosing a location for your apartment building, consider this factor. Your building should at least be accessible by public or private transportation, near a park or place of recreation, close to food establishments, or situated in a nice part of town.
Space
Out of all the factors here, space is of the least important but crucial all the same. The space within your rental units will play a great deal in attracting your target market as well. The dimensions of your property can also directly affect the prices you will set for the rental fee.
For instance, if you decide that your building will only have studio or single bedroom apartments, then your potential target market can be single professionals or students, depending on your location. Having two or three-bedroom apartments, on the other hand, can be potential homes for families or groups of friends.
As a property owner, it really is important to mind your target market when creating the building. This is especially relevant if you’re designing your building from the ground up. However, if you’re only repurposing an existing building, then your space will dictate the kind of market you will attract.
Most of the factors that can influence the decision-making process of your potential renters tend to overlap. But that doesn’t mean that they can’t be influential on their own because most factors can be “make or break” situations. Having a niche and a target market in mind will help you adapt your property to cater to its needs.
