What Today’s Renters are Looking for in Apartment Living

To successfully attract and retain long-term tenants, multifamily owners and operators must understand and cater to what renters want. Lucern Capital Partners has successfully transacted on $2.5 billion of real estate properties, including dozens of multifamily assets. To date, we have been able to maintain low vacancy rates on our properties due to our due diligence and active asset management practices.

We believe that our success is due in part to our ability to understand our tenant base and provide the services and amenities that are most important to them. Throughout the process of sourcing, acquiring, and operating multifamily assets, we take steps to connect with tenants to learn about their needs and implement solutions.

Every property’s tenant base is different

Each market is different, and each property within a market has a tenant base with unique needs. For instance, luxury apartment renters have a very different set of needs from workforce renters, just as Gen Z renters are interested in different amenities than baby boomers.

Renters in one market might be more interested in pet-friendly amenities like on-site dog parks and easy-to-clean flooring, like tile or laminate. In other markets, renters may be more likely to seek out apartments with ample parking, or units with walk-in closets and plenty of storage. These differences affect the ROI, particularly when property-wide and in-unit improvements are made.

Tenant research is part of due diligence

Before acquiring a property, we do boots-on-the-ground research to determine what current and potential tenants desire when evaluating a place to live. We always tour nearby properties and inquire about the amenities, pricing and application process. We ask questions of the leasing agent. For example, if improvements have been made to the property, have the vacancy rates improved?

This research informs our decision to acquire the property. It further informs our value-added strategy for that asset. If renters in the area are willing to pay a higher rent for an on-site gym, part of our business plan might include building a workout facility.

Ask for tenant feedback

Once the property is acquired, we send a letter to tenants to introduce ourselves and to let them know that we look forward to making the property a great place to live. We welcome feedback from tenants, and if an amenity or service suggested by tenants makes sense from a financial perspective, we will implement it. Our goal is to generate superior investment returns for investors while also providing a happy and comfortable place for tenants to live. A few examples of improvements that were made to properties because of tenant feedback include: an Amazon Hub for secure package deliveries, a dog park for pet owners, and smart locks and thermostats.

Although the goal of offering amenities is to attract tenants, we also want to retain them. We achieve this by understanding the market and our tenant base and seeking tenant input once the property has been acquired. Even if changes cannot always be implemented right away, tenants often appreciate the chance to be heard. At the end of the day, understanding renters is key to providing above-average returns to investors and making tenants feel at home. Doing so has been instrumental to Lucern Capital Partners success in owning and operating multifamily assets along the U.S. East Coast.

About Lucern Capital Partners

Lucern Capital Partners is a real estate investment firm that targets value-add multifamily and mixed-use assets along the U.S. East Coast with a focus on the Carolinas. With over 55-years of combined real estate experience, the Lucern Capital Partners team has successfully transacted on over $2.5 billion of debt and equity real estate transactions during their careers. They bring that knowledge to accredited investors to provide income-generating investments in institutional-quality multifamily and mixed-use assets through fund vehicles and standalone transactions.