People visit or move to Miami to enjoy its pristine weather and endless beach views. Whether people rent your condo for vacations or live there through extended leases, they’ll prefer it over other local properties if it has a luxury outdoor space. Transform your space into the best place to stay in Miami by utilizing these exterior renovation tips to improve the ROI of your property.
Why Is It Important to Improve Your Condo’s ROI?
Improving your condo’s return on investment (ROI) is crucial for numerous reasons. Condos appreciate in value at a much slower rate compared to single-family homes, making it more important to focus on your ROI. The monthly rent, property value, or vacation rental price shouldn’t result in a financial deficit when you need to make standard repairs or complete upkeep work.
You should also make enough of a profit to pay off the mortgage while keeping up with property taxes. Increasing the property value with a high-end exterior space boosts the rental price and your ROI.
Reasons Why Luxury Outdoor Spaces Improve a Condo’s ROI
Adding an outdoor area where tenants can relax will increase your property value for multiple reasons. In addition to improving the condo’s value with new construction, your ROI benefits from things like:
Tenants who are willing to pay more for an upgraded living space.
Tenants who will pay higher rent for a deluxe exterior community amenity.
People who look for condos resembling in-demand trends like outdoor relaxation areas.
They also make beachfront condos more enticing because short-term or long-term tenants can spend more time soaking in those beach views without leaving their homes.
How to Create a Luxury Outdoor Space for Tenants
When you’re ready to upgrade your condo with an outdoor area for tenants or renters, use these steps to start the work. Local professionals will help you detail your plan, understand your budget and begin the job on your preferred timeline.
1. Plan the Project In Detail
There are numerous types of open-air spaces you could add to your condo. Consider what would most appeal to residents based on your unit or building. Tenants in a beachfront condo might love an upgraded porch with amenities that make their view more enjoyable, like a hot tub or luxury seating.
Street-facing condos will make the entire building look more modern by showcasing up-market features like detailed architecture or lounge amenities. Are you imagining an outdoor space for a single unit or a shared community area with special features like high-end grills? Note what your condo doesn’t currently have to decide which alfresco options you’ll add through your upcoming project.
2. Work With a Designer or Architect
A designer or architect will need your detailed plan to create an appealing open-air space for a unit on the second floor or higher. Your notes guide their decision-making process and provide invaluable information about what people would want from the final product.
Their attention to detail will improve residents' satisfaction and ultimately increase your building's ROI. People are more likely to pay a higher price for an upscale condo on a beautiful property. Cohesive designs inside and outside the space, five-star amenities, and multi-use spaces like outdoor areas will boost your property’s value and make it more in-demand.
3. Discuss Construction With Contractors
Once you have a complete picture of your luxury exterior space, consult a few local contractors for construction quotes. They’ll review your specifications and outline the work necessary to make everything come to life.
A ground-floor unit or community outdoor area might require grading. The experts will calculate the work necessary to maintain a minimum 3% slope to direct rainwater away from your condo while ensuring the foundation of any porch or community amenity is structurally sound.
If you’re building an alfresco space for a ground-floor condo unit, construction teams will need to assess how they’ll get materials up to the unit and what machinery they need to reach it from the ground. They’ll factor in your condo’s location, the project’s materials and the time of year before providing a quote that meets your budget.
4. Prepare the Area for Construction
Preparing your condo’s building for construction is crucial. The work will be noisy and may last a significant amount of time. The construction industry is still dealing with supply chain issues that delay material manufacturing and shipment.
Other people in nearby units should understand when your outdoor project will start and the projected end date. If they know when it should end, they won’t feel frustrated about potentially dealing with the noise for a seemingly endless time frame.
It’s also vital to secure the area surrounding your project. Block off the area below the construction if you’re renovating a condo on the second floor or above. Ground-level projects should also barricade the work areas to prevent people from stepping on stray nails or encountering the machinery.
Work with your contracting team regarding local noise ordinances as well. You should see if your town or county has noise ordinances about early morning or late-night construction so you don’t receive a surprise fine.
5. Mention the Multi-Use Functionality of the New Space
If you feel overwhelmed by the planning process, remember how your property will benefit financially from your renovation work. Florida is an especially popular place for the luxury real estate market. In recent years, the state experienced a 25% jump in sales prices for high-end properties, so the demand for lavish amenities is there. You only need to provide them to start working with renters who can pay more for your condo.
After your project ends, your modernized upgrades should become part of your marketing efforts. Include updated pictures of the upscale outdoor space in rental listings so everyone knows your condo is one of the best places to stay in the area.
Mention how they can use the space based on the included amenities or the project type, like a community pool or private balcony with an infinity pool. You’ll appeal to more future renters, increasing demand and improving your project’s ROI.
Start Your Condo’s Luxury Outdoor Upgrade to Improve ROI
Creating a luxury outdoor space takes planning and time but is worth the effort. You’ll improve the ROI for your condo by increasing your property’s value, boosting rental demand and making it the nicest place to stay in your area. Plan every detail with a designer and contracting team to start your lavish renovation without extra stress.
Evelyn Long is a writer that specializes in housing market trends. She is also the founder of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other sites like National Association of Realtors and Realty Executives. Subscribe to renovated.com/subscribe for more posts by Evelyn.