Last Updated on September 21, 2023 by Kravelv
There can be various reasons why you would want to turn a property into luxury apartments rather than keep it as a house. For instance, it could be that you and another family member have jointly inherited it and want to split it between two teens, one from either family unit, to be their first home without having to have them share 'their space' or compromise on their level of freedom.
Performing this type of work on a property will take careful planning and money, so it is important that you understand the different areas that will have to be considered and that you prepare yourself for some compromises.
#1 Whether to sell or rent
You will have to decide early on whether you will keep your newly renovated apartments and rent them out - or sell them to the highest bidder, as this could factor into some of your decisions. Of course, you could do a mixture of the two. If you are thinking about holding on to them and renting them out, you would be wise to accept the help of a residential lettings agency for a small monthly fee.
This is because they will advertise your properties for you, perform checks on the potential tenants that are interested in renting from you, and deal with the deposits and, if you choose an all-inclusive package, deal with rents, visits, and issues that your tenants may have. This will leave you free to concentrate on your next renovation or other areas of your life.
#2 Workable floor plans
Rather than trying to do all the planning yourself, you should enlist the services of a qualified architect. They will be able to inform you of any structural alterations that will need to be performed and will also be able to provide you with designs that will keep the aesthetics of the building - or change it in a way that it will still seem attractive. They will also be able to provide you with detailed drawings and floor plans, which will help any contractors you need to hire to perform the changes.
Of course, qualified architects have more uses for you than just drawing plans and redesigning the exterior of your property. They can also help you with choosing materials, hiring contractors, and ensuring that your renovations are compliant with any relevant state or federal laws and regulations.
#3 Personal access points
It is likely that you are going to need to adjust the access points to the house so that those who will live there will have their own front doors. Providing exterior access via individual front doors is more desirable to tenants, providing additional privacy and security. However, if you cannot get away from the communal hall, then it is not the end of the world, but you will have to provide additional upkeep for this area and ensure that only your tenants can access it.
If your property has a front yard, you may need to convert this into a parking area so that each tenant has somewhere onsite to park their car. This will not only be pleasing to your potential tenants but will also make neighbors a little happier about the property being turned into apartments, as there will not be rows of vehicles parked along the street.
#4 Shared facilities
You will also need to consider any shared facilities that your tenants may need or want besides the communal hall. A communal laundry room with washing machines and dryers will save space in the apartment's small kitchen or bathroom areas. However, strict rules and instructions will have to be applied regarding the use of the machinery and the care taken over the laundry area. For instance, if the dryers that you supply are condenser or ventless dryers, then they will have filters that will need to be cleaned regularly or risk being a major fire hazard.
Aside from this, if the property has a back garden that is also seen as a communal area, you will have to include landscaping and garden maintenance among your monthly landlord duties. Although you can hire professional gardeners to attend to the area and keep it looking nice and fully usable, it could work out to be costly and, therefore, boost any maintenance charges you apply to your tenants.
If you are setting your apartment up to be more high-end, you may want to include a communal gym in the building itself or in a separate purpose-built unit in the garden. For this, you could ask for a little extra in rent, but again, you will have to ensure that the equipment is kept in a usable condition and enforce strict rules on how it should be used, maintained, and kept.