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This week’s article will focus on our progress at Northwood Apartments (formerly Bella Vista). We acquired this 24-unit property in New Hope, MN, in February. Recognizing its potential, we knew that with proper care and a few interior and exterior renovations, we could boost both rents and resident satisfaction. Here’s what we've accomplished so far.

Exterior Renovations and Renewals

We started with the basics: installing security cameras and a digital property access system that allows residents to use their phones to enter the building. We updated the fire alarm system, replaced the common area carpet, and installed LED lighting. Additionally, we removed a few dead trees in the front yard, improved the landscaping, and updated the signage to the new Northwood Apartments branding.

These basic upgrades allowed us to renew current residents at or above the projected two-year rents. Our average new rent for one-bedroom units increased from $1,096 to $1,216, and for two-bedroom units, it increased from $1,300 to $1,400. These improvements were achieved without any interior renovations, solely through common area upgrades, better management, and improved communication.

Interior Renovations and Rent Increases

Our renovation plan also includes extensive interior renovations to fully realize the property's potential. We installed new flooring, applied a modern two-tone paint scheme, replaced all cabinets, added solid surface countertops, installed modern, tiled backsplashes, upgraded to new stainless-steel appliances, and replaced lighting and doors. We modernized the bathroom with a new tile tub surround, a new vanity, and modern fixtures. We also added an open-concept closet in the entryway, providing extra storage and making the space feel larger. To view additional photos of the renovations click here.

As a result of our renovations, we have achieved higher rents. Current residents moved into the newly remodeled units, where we now receive $1,350 per month for one-bedroom units and over $1,530 for two-bedroom units. This exceeds our two-year proforma rents by 10%, meaning our newly achieved rents are 10% higher than what we had projected in our financial plan for the 2nd year of ownership.

In addition to the increased rents, we further boosted the property's income by implementing RUBS (Ratio Utility Billing System) and adding garage rental income to the leases. RUBS is a method of allocating utility costs among residents based on factors like unit size and occupancy, allowing us to recover a portion of the property's utility expenses. By including garage rentals in the leases, we generated additional revenue from residents who need parking space, further enhancing the overall income of the property.

In Conclusion

We still have a long way to go to fully realize Northwood's potential, but it has already proven to be an excellent case study of how we can add value to apartment buildings. The progress we've made so far highlights our ability to increase both rental income and resident satisfaction through strategic renovations and effective management.

Looking ahead, we have several additional improvements planned for Northwood. We’re committed to continuously upgrading the property and providing our residents with a high-quality living experience. These efforts will not only boost the property’s value but also ensure long-term success and stability.

We invite you to invest alongside us in future opportunities. Stay tuned for more updates.

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