If you are an investor considering the construction of a new multi-family housing property, no doubt you have a few questions before embarking on such a large project. You likely already know that multi-family developments like apartments and townhomes are a profitable investment and that there is near-infinite demand for well-appointed rental homes on the market.
From there, however, you will need to navigate the complex process of building your team, planning your property, and ensuring high-quality construction from start to finish. At Ted Trout Architects, we have planned many now-thriving multi-family developments and complexes, and we can share the answers to some of the most frequently asked questions regarding multi-family constructions.
1) Why Build a Multi-Family Property Instead of Buying One?
Older apartment buildings come with all the flaws of previous eras. Old pipes, aging appliances, and architectural designs that have gone out of style are all factors to consider. The maintenance costs of upgrading old apartments to competitive modern standards often causes investors to consider building, instead. You have the opportunity to create attractive, trending, sustainable, and desirably brand-new units instead of wrestling with the challenges of a large older property.
2) How Do I Cost the Construction of a Multi-Family Development?
Multi-family development is a multi-stage process, and you will need to evaluate the cost of each stage. These include:
- Purchasing and preparing the land
- Acquiring a custom architectural design
- Sourcing construction materials and appliances
- General contractors and subcontractors
- Final inspections and finishing touches
- Marketing and tenant screening
3) How Do I Choose the Right Land for Multi-Family Development?
Market research and surveying are both required to find the right place for a new multi-family development. Market research will tell you where population trends will create demand – and identify appealing locations for commuting, shopping, and recreation. Surveying will tell you if the land is stable and adaptive enough to support your construction plans.
4) How Many Units and Floorplans Should I Include?
It depends on the size of your project. Most apartments range from studio to 3-bedroom floorplans. 2-bedrooms are in the highest demand for individuals, couples, and small families, but both smaller and larger apartments have a significant profitability margin, as well.
Consider working with your architects to find the perfect balance of floorplans that also optimizes the shape of your buildings, lifestyle convenience, and the beauty of the property.
5) Who Should I Hire to Build a Multi-Family Property?
You will need both architects and a construction developers to bring your vision to life. Architects will help you work with the land and your investment goals to create beautiful properties with ergonomic traffic and lifestyle designs.
Your developers should be experienced multi-family builders with proven results in terms of quality and property success.
6) How Long Will It Take Before I Can Start Accepting Tenants?
You can start marketing for tenants with digital renderings of the architectural design almost immediately. However, the multi-family construction process tends to take between 2 and 5 years, depending on the size, complexity, and potential delays.
Always calculate for inspections and final touches before setting an absolute move-in date for your first tenants.
7) What Are Common Issues I Can Anticipate in Multi-Family Construction?
There are always a few issues to consider with any large construction project.
- Material quality: Ensure that your property is built with sufficiently high-quality materials, utilities, and appliances.
- Delays: Weather and supply chain issues always cause some delays. Be prepared and adapt your calendar accordingly.
- Subcontractor Efficiency: Work with a developer who has a track-record of efficiently handling contractors and subcontractors.
8) What are the Best Qualities of a Multi-Family Property Design?
What makes a multi-family property more appealing than others in the region? There are a few best qualities to plan for:
- Spacious and ergonomic unit floorplans
- Green spaces and outdoor recreation areas
- Elegant, comfortable, and useful amenities
- Smooth flow of both vehicle and foot traffic
- Protection from the weather
- Community-building design
- Sustainability
9) How Can I Plan for Long-Term Sustainability?
Sustainability is a leading trend for both construction and lifestyles today. Multi-family properties have a great potential for sustainable design.
- Efficient plumbing design to minimize water waste
- Energy-efficient and water-conservative appliances in every unit
- Rooftop solar to offset power consumption
- Rainwater management to garden irrigation
- Easy access utility panels for quick and efficient repairs
10) How Should I Plan for Maintenance and Upgrades of Multi-Family Property?
Conserve 1% to 5% of your annual income for maintenance, even if you don’t use it every year. This will supply funds for major repairs like roof replacements and unit renovations. Spruce up units once a year or between tenants, and upgrade appliances every 5-10 years. Fully renovate units every 15-20 years. Maintain constant facility inspections and repairs to upkeep overall quality. Also, listen to tenants and adapt to changing trends to maintain profitability.
Plan Your Next Multi-Family Construction with Ted Trout Architects
If you are planning to build your own multi-family property, naturally you want the most elegant, ergonomic, and lifestyle enriching design. At Ted Trout Architects, that is exactly what you will find. Our team will work with you to tailor each property design to work with your chosen property and create the msot desirable, community-building, and profitable multi-family development design for your next new-construction investment.
Contact us today for an initial consultation on your multi-family construction plans.
