Multifamily Value Add: Private Yards

So I wanna talk about multifamily value add, specifically with private yards. Some of these properties that we look at have an opportunity to add some private yards. And what that means is you’ve got some real estate, so to speak, outside of a tenant’s backyard. It may or may not be already enclosed, but oftentimes there’s an opportunity with a 70s or an 80s build property to go in and build a private yard. We tend to like this horizontal wood fence, it kind of gives it … serves two purposes. It gives it a modern look, it really helps out the aesthetic of a property. Because as we’re looking at, let’s say, a property with either, we’re buying right now, it’s 18 buildings, right? And it’s got hearty, it’s already got the roof, we’re not going to change any of that. So what can we do to go in and have an aesthetic improvement? And private yards are very simply, relatively inexpensive way to do that where you put some horizontal wood yards. And we might see a 50 to $75 dollar a month increase in rent. Which means it’s a relatively short payback and a relatively high ROI on that as an individual income driver for that specific unit, hopefully we can capture a little bit better rent because somebody wants to put their dog outside. Or even kids, you know, in an apartment, that can be a little scary as a parent to just kind of let your kids run around. But if you’ve got a relatively good size private yard, that’s a huge amenity in an apartment complex. So, again, we seek to create win win scenarios for investors and our residents, right? And private yards are one way to accomplish that where we’re improving the aesthetic of the property, we are creating a nice amenity for the resident and we are creating a nice improvement to our net operating income, which has a direct impact on the valuation on the property and so forth. So private yards are a good way to … when we’re looking at how do we take the 70s or 80s asset and improve it and make it better for everybody and create a win win scenario? Private yards are one way that we can do that. which has a direct impact on the valuation on the property and so forth. So private yards are a good way to … when we’re looking at how do we take the 70s or 80s asset and improve it and make it better for everybody and create a win win scenario? Private yards are one way that we can do that.