RENT Magazine Q3 '23

As multifamily investors, we often feel like the major challenges we face are with acquiring deals – finding the deal, finding the money, and getting to the closing table. But as anyone who has gone full cycle on an investment knows, the real challenges are the operational and asset management work that takes place after the asset has been purchased. This is especially true for value-add investments. One of the most difficult decisions we as investors need to make when operating multifamily is how much renovation we should do on units as they turn over. TO UPGRADE OR NOT TO UPGRADE: THAT IS THE QUESTION

So, how do you decide what level of renovation to perform when turning over a vacated unit? These are the factors we like to consider:

VALUE-ADD INVESTMENTS Those investments where we rely on physical and management improvements to boost our NOI and increase the value of our asset.


First, we always like to consider multiple options for the turnover. At the very least, we consider three levels of renovation for a vacated unit: Classic Renovation, Partial Upgrade and Premium Upgrade.


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