Are you on the move or heading out on your own for the first time? For many, this means finding an apartment that has the perfect balance of location, amenities and most of all, price.
With so many developers building skyward, many cities have more apartments than ever, and competition for tenants can be steep. In fact, the rental vacancy rate in the U.S. has been dropping since the recession ended in 2009 and is now at 6.9%, similar to what rates were in the mid-nineties.
One way developers are competing for rental dollars is by loading up their properties with high-end amenities, including: pools, gyms, built-in laundry and more.
All of these amenities may seem great, but they come of a cost to the renter. In this article, we’re going to break down some of the most common amenities and what they add to your costs, from the most expensive to those that could even end up saving you money on a monthly basis!
One ‘amenity’ most sought-after by apartment renters is that “million-dollar view.” Depending on the metropolitan region you’re shopping in, this can mean a premium on units without a comparable view. That’s a huge swing, especially for something that’s more of a ‘want’ than a ‘need’ for most people.
Another amenity people covet is outdoor space. Currently, it’s estimated that 41% of renters are willing to pay $50+ per month for an apartment with a balcony, as compared to similar apartments without one. But renters should be aware that limits on the use of outdoor spaces —particularly balconies— can be dictated by the landlord. So make sure you can put that new BBQ grill to use before you sign on the dotted line.
Although every renter is different in terms of their ‘must-have’ list of amenities, a few features are pretty much universally desired. The top in-unit apartment amenities that influence rent prices are:
Energy-efficient appliances: 16%
High-End Kitchen Appliances: 16%
Washer/Dryer in Unit: 15%
Hardwood Floors: 12%
High-End Kitchen Countertops: 11%
Lighting, Plumbing, and Electrical Updates: 9%
Ceiling Fans: 6%
Patio, Balcony, Outdoor Space: 6%
Garbage Disposal: 5%
Cable TV: 4%
But it’s not just about what an apartment unit on its own has going for it: the entire building contributes to the appeal. The top community amenities that influence rent prices are:
Pet Friendly: 17%
Fitness Center: 13%
Swimming Pool: 11%
Common Areas for Socializing: 10%
Outdoor Kitchen: 10%
Clubhouse: 9%
Playground or Play Area: 8%
Package Holding Area: 8%
Business Center: 8%
Landscaping common Areas: 6%
An in-suite washer/dryer will also potentially save you money, with a trip to the Laundromat costing on average $3.12/load and in-suite costing only $0.97/load in energy and water usage.
Still, for some, the amenities that many renters have come to expect can’t compare to a sense of history and period architectural details.
In major markets, pre-war buildings or converted industrial properties can command a 10-15% premium over modern counterparts. The reason for this is largely that historic districts tend to be located in the most desirable/established parts of the city, and industrial conversions are the signature of gentrification and the emergence of ‘hip’ neighborhoods. Also, design elements like exposed brick, hardwood floors, original fireplaces and hand-finished moldings are too cost-prohibitive to be found in new construction builds, but are ubiquitous in historic properties.
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But no matter how old the property is, design elements do have an impact on price. We found that 49% of apartment residents are willing to pay $75+ per month for hardwood floors. And 39% of apartment residents are willing to pay $30+ for granite countertops.
Ultimately, finding the perfect apartment is about balancing your needs and your expectations. A lap pool, garden terrace or skyline view are hardly worth the extra funds if you can’t afford it. Practical amenities like on-site laundry and package drop-off and storage may not be the most glamorous features, but they pay dividends in terms of convenience. With some diligence and smart planning, a balance can be found between what you want, what you need, and what you’re capable of having.