If you search the phrase “make apartment upgrades,” the results will likely produce at least one headline that looks something like this: “How to Get Your Landlord to Make Necessary Upgrades.” It’s almost as if landlords have a reputation for not wanting to spend money…

The truth is this: apartment investing and management is like any other business with a goal of increasing the bottom line. This, of course, means keeping a close eye on expenses, and that includes any upgrades to the property.

Upgrading for the sake of doing so, or taking it on simply because the property across the street is doing it, aren’t reason alone to justify the expense. But, there will be those times when the circumstance necessitates such action. Here are a few examples:

Safety and security—If you think it doesn’t need to be said, you would be surprised at some of the infractions against landlords and managers for failure to update features that pose security or safety risks to tenants. Examples include outdated HVAC systems, electric or gas appliances that pose a hazard, faulty windows and doors, and worn stairs and decking, just to name a few. It’s important to keep in mind that most states require property owners to address safety concerns. Neglecting to do so could result in significant fines and worse.

Taking this a step further, it can become necessary to make upgrades if security on the property becomes an issue. It may be as simple as replacing door and window locks in all units to reduce chances of break-in. Larger problems, however, may make an investment in monitored security systems necessary.

Minimum requirements—Cities and states also have their own minimum standards for all apartment properties. These standards dictate what is and is not acceptable in terms of accessibility and design in order to ensure all tenants have the same chances of living in, enjoying, and fully functioning on a property.

The Texas Accessibility Standards, for example, are designed to define what’s acceptable for persons with disabilities. For existing buildings and facilities, it sets the guidelines for alterations that affect primary function areas so that: “an alteration that affects or could affect the usability of or access to an area containing a primary function shall be made so as to ensure that, to the maximum extent feasible, the path of travel to the altered area, including the parking areas, rest rooms, telephones, and drinking fountains serving the altered area, are readily accessible to and usable by individuals with disabilities, unless such alterations are disproportionate to the overall alterations in terms of cost and scope.”

You can be sure that, if a property you have acquired or are soon to acquire has yet to meet minimum standards, such upgrades will be mandatory.

Market demands—While making upgrades simply because a competitor is doing so isn’t encouraged, it’s different when all your competitors are making or have made them. Let’s say, for instance, your property is within a one-mile radius of five other properties. All are comparable in age, unit size, and amenities. The major differences are in the upgrades made to improve the other properties so they don’t appear dated. If your property stays outdated, a comparable price can no longer be asked. Updates have now become a necessity in order to stay competitive.

In the End…

Two major additional points need to be made here. First, if upgrades are necessary and they aren’t made, such as in the case of safety and security issues, postponing them could and most likely will lead to more significant issues and bigger damages down the line. Second, even when upgrades become a reality, they don’t always have to break the bank. For examples on how to make simple upgrades that produce a big impact, click here.