While a mortgage payment might have signaled success in the past, today more people are choosing to rent for convenience over necessity. These shifting ideologies of success mean a large pool of affluent renters are shaping the market for developers and owners who want to attract high end tenants with high end amenities.
Multifamily development trends reveal what luxury apartment dwellers are willing to pay above market value for in their rental properties.
As reported by MarketWatch, the trend of constructing high-amenity buildings started about a decade ago, when more people started working from home and traveling more. MarketWatch notes that these frequent travelers, used to the amenities of luxury hotels, wanted the same type of high end conveniences at home available through the flexibility in renting.
MultiFamily Executive supports the notion that the current trend in recent development of ultra-luxurious amenities may also be due to the amenities war among student housing developers which shape the expectations of new renters fresh out of college housing.
While not every renter is willing to pay for these amenities, some fancy rental communities are providing more than covered parking and onsite laundry. For tenants who don’t consider price an factor when finding the perfect rental property, here are some the luxury amenities available for them to choose from:
Bike storage and repair – With an emphasis on green living, preference for bicycle related amenities has increased in the last few years. This amenity goes beyond a standard metal fixture outside the building to lock one’s bike to, but includes super secure places to store a bike and repair stations to fix everything from flat tires to faulty gears.
Car-sharing service: For city dwellers that don’t need a car for everyday use, car-sharing services like ZipCar, have become a trend in some luxury apartments who offer their own car-sharing service among tenants who want a car for weekend trips, vacations or a special occasion.
Rooftop Terrace: Roof access is not enough for some apartment dwellers. Rooftops have been transformed to include comfy seating, sound systems, big-screen TVs, fire pits, BBQ, cabanas and even community gardens, that promote socialization.
WiFi Cafe: Going beyond a business center with one or two lonely computers to an Internet cafe for residents with a full espresso bar, not only are these onsite coffee shops convenient for tenants who want to fuel up while getting work done but become a place to socialize. Some communities extend their cafe offerings to include wine and beer cocktail hour for residents, similar to hotel services.
Movie Theater: Community recreation rooms have gone one step further at luxury apartments to include full service media rooms with big screens, comfy seating, private screenings and movie theater style snacks for tenants.
Guest Suites: High-end apartments offer tenants the ability to reserve a furnished suite for visiting overnight guests at costs similar to hotel. Residents have the opportunity to invite friends or family to visit without the burden of pulling out the air mattress.
Concierge Service: An onsite concierge is available for residents at some high end apartment to schedule appointments, plan personal events, shop and even run errands for tenants.
According to John Caulfield of Building Design + Construction, developers are seeing more of these high-end amenities in multifamily housing construction: child-care services, cooking classes, dry cleaning/laundry service, package delivery management, personal shopper, pet grooming, rock-climbing wall, spa/massage center, community wine cellar, and yoga/aerobics/wellness classes for tenants.
What started 10 years ago with well off jet setters seeking luxury hotel amenities at home, has carried over into current development for renters who are willing to pay above market rent prices for added comfort, convenience and socialization features in their rental property. These amenities aren’t without a hefty price tag though, and do not cater to most renters’ preferences who evaluate affordability alongside amenities.
For property managers and landlords looking to attract the largest pool of potential tenants with seek normal market rental rates, check out our list of What Renters Really Want – Property Amenities to Feature or Forget.