How to Budget for an Apartment Building Remodel
Many apartment owners choose to renovate their properties for a variety of reasons. Whether it is increasing rents to attract tenants or making upgrades that increase overall property value.
It is important to understand what your expectations should be for an apartment building remodel before you get started. The process can be a little more involved than that of a single-family home.
Budget
If you’re planning to invest in a major renovation of your apartment building, the first step is setting a budget. The amount you spend will depend on the size of the apartment, how extensive the remodel is, and whether it involves wet spaces such as bathrooms or kitchens. You may also need to pay for permit fees, design costs, and labor. These factors add up and can quickly increase the cost of your project.
It’s also important to consider any unseen costs. For example, demolition and removal of existing materials can add up to several thousand dollars in labor costs alone. If your property is a prewar co-op or brownstone, these costs can be even higher. Similarly, many buildings require a multi-stage approval process and stringent liability insurance requirements for contractors to perform renovations.
You can save money by focusing on cosmetic changes that are likely to appeal to potential tenants. Paint, a good clean (particularly of windows), and new knobs on kitchen joinery or wardrobe doors can make a significant difference to the look of an apartment for very little money.
Smart renovations can also help you increase your rents. However, it’s important to keep in mind that it will take four to six years for a cosmetic renovation to pay for itself.
Design
A renovation of an apartment building is an excellent opportunity to rebrand the property and attract new tenants. Modernizing the exterior and interior of an apartment complex can make it more attractive to millennials, and a good commercial remodeler will be able to create a contemporary look that is affordable for a large number of units.
The first step is to determine what works can be carried out by consulting the strata by-laws. There may be restrictions on what you can do to the outside of the apartment building remodel building, but if there are no restrictions you should be able to carry out a variety of minor and cosmetic improvements. Minor works include surface upgrades, such as painting and hanging hooks, while major changes to the interiors require a more detailed design, such as removing walls, installing air conditioners, and changing light fittings.
It’s also important to consider the impact of renovations on residents. Apartment buildings are typically more confined than standalone houses, so it’s essential to ensure your renovation work doesn’t cause too much disruption. This can be done by putting up notices in each apartment explaining the schedule of works, providing a designated working timeframe, and ensuring contractors are parking in visitors’ spaces to avoid blocking access to resident apartments.
Other improvements that can be made include opening up the kitchen and adding additional storage spaces. Kitchens are a priority for people moving into an apartment, and an open kitchen will give it a more appealing appearance.
Permits
During an apartment renovation in NYC, work permits are necessary for certain types of changes. Getting the permits in advance can reduce delays and ensure that the renovations meet code requirements. Depending on the scope of the renovation, you may need a building permit, zoning permit, or both. Zoning permits are typically required for major work in a landmarked or historic building or for any work that affects the use, height, or density of the apartment building.
The permits needed for an apartment renovation project depend on local and state regulations, as well as specific guidelines set by the building management company. It is important to research these guidelines and discuss the work you want to do with your licensed contractor before beginning a project.
Structural changes, including adding or removing walls and modifying load-bearing elements, generally require permits. Alterations to electrical, plumbing, and HVAC systems also often need permits to guarantee compliance with safety protocols. Exterior modifications, including balconies or patios, typically need permits as well.
If you are not sure whether a permit is required for your renovation, it is best to contact the Department of Buildings or your local inspector to ask. It is important to get the permit in advance because if you do not, the department may issue a stop-work order and a fine for apartment renovation contractors the violations. This will delay the completion of your renovation and increase your overall costs.
Contractors
While most people associate construction costs with ground-up development, renovation work can also cost more than expected. For example, the costs for fabrication-templating and cutting materials often aren’t included in quotes. This is especially true when working with high-ticket items like appliances. It’s important to choose a contractor who understands and can flag these costs for you.
Another key factor is the project’s scope. A good apartment renovation NYC company will make sure you have a clear idea of what the work will entail. This will help you plan your budget and timeline for the project. It will also help you avoid surprises down the line.
For instance, Register’s team of specialists can help clients determine what their apartment needs are and suggest upgrades accordingly. They can also assist with the bidding process to ensure that you get competitive prices and terms. They can even negotiate with the architect to change design specifications in order to fit your budget.
While this may be a hassle, it’s worth the effort in the long run, as it will make the entire project go more smoothly. Getting the right team in place can also prevent issues during construction that could delay your completion date. For example, changes to the design, additional work ordered by the DOB, and other mishaps can impact your timeline and add to the overall cost of your renovation.
