Miami is one of the most populous cities in the state of Florida. That makes it a great place to build an apartment building. It’s an investment that is likely to pay off in a big way. Still, to help ensure the quality of your project, there’s a lot to consider before you begin. Below, you’ll find the things you’ll need to think about when you build an apartment building in Miami.
Before You Start
Before you choose to build an apartment building, you have to consider whether it’s worth the expense of starting from scratch. You could certainly purchase an existing building, which would save in construction costs. However, starting with a brand new structure could command more in rent because you could customize the building to your tastes instead of trying to fashion a building that was perhaps the vision of someone else. The cost of remaking an existing structure to your tastes might exceed what it would cost to start anew, so keep that in mind. Still, knowing that they are moving into a brand-new structure can draw in tenants. There might be additional costs in getting the HVAC, electrical and structural standards up to code, especially when you’re talking about a very old building.
In researching your options, you might find that as you do find yourself opting for a new building, that going bigger would be more profitable in the end. If you start from scratch, going for a larger complex will end up bringing in more revenue in the end. Working with construction and zoning expenses fees especially can help her if you get estimates based on a flat fee.
Once you’ve made the calculation that it makes more sense for you to build an apartment building from the ground up, you’re ready to move on to ensuring its success.
Although you are a property developer, you are not the only person responsible for the success of your project. You’ll need to find contractors who are dependable and understand the essentials of how to build an apartment building.
One of your first essential partners will be civil engineers because they can help you understand the best design for your property, as well as the needs of other public work entities. Look for a firm with a range of experience and knowledge about what you’ll need to get your building operational as soon as possible.
A civil engineer will tell you that road maintenance is vital to a new apartment building. It’s not just about design and ensuring that arriving at your complex is easy, but it’s also about road quality. It’s important to make sure that bad roads don’t lead to complaints by tenants about damage to their vehicles. This is why it’s key to partner with an asphalt paving company with a strong track record.
Perhaps one of the most important considerations is choosing a construction company to build an apartment building. Not only do you want a company with a lot of experience, but you’ll also want someone who is familiar with code requirements. For example, you’d want someone who knows that condos in this state must undergo public inspections every 40 years and who would be prepared for that eventuality, keeping tabs on everything.
It’ll be important to ensure the quality of the entire structure, and that includes the roof. If you have leaks in your apartment buildings, it can lead to unhappy tenants. So make sure to contract with one of the commercial roofing services in the area with a reliable reputation. The roof is important for another reason: the weather. The beaches are what draws many people to this city, but it also attracts hurricane activity. It’s very important to make sure your roof is sturdy enough to withstand heavy winds and rain and keeps those inside safe. There’s no one correct answer here — you can opt for metallic, ceramic, slate — all are strong enough to withstand the sun and the elements.
Another important partner is having a capable HVAC company on hand. In a city as hot as Miami, a problem with the air conditioning is an immediate concern. Be sure to find a firm that is flexible enough to handle any demands at all hours.
Especially when you’re starting out, curb appeal can set your apartment aside. You should hire expert landscapers to maintain the outer appearance. A designer could also give you feedback regarding the proper color scheme, doors, and windows to meet your apartment building’s style.
Once the project is complete and tenants begin to move in, it’s obviously important to retain them. One way to do this is by considering linking up with property maintenance companies that will keep your building grounds looking pristine at all times. It’s not always about looks — remember that high grass can also lead to pests and rodents, so this service is important. You can also retain a landscaping company that can also plant attractive plants and trees in the building. An expert landscaper can be not only creative but use the right shrubbery and plants that are natural repellants to mosquitoes and other insects, including citronella and lavender. They’ll also know the right trees to plant that can provide shade for the apartment units so their homes don’t get too overheated. That can give your residents a break from having to turn on the air conditioner so often.
Location, Location, Location
While it’s true that Miami has a population that only continues to grow, you also need to consider proximity to other complexes and how to stand apart from the competition. If possible, try to keep a literal distance from other apartment complexes. If your lot is near others, you can offer perks such as eliminating an application fee, or guaranteed parking.
If your apartment complex caters to younger people, you might want to build an apartment building near public transportation, or near important amenities, such as affordable restaurants, libraries, gyms, movie theaters, and parks. You can also market your apartment’s closeness to nearby universities and colleges, such as Florida International University. If your apartment building has proximity to a nearby sports facility, that could be a draw for student-athletes.
It’s worth remembering that your tenants might be older as well, as a significant portion of the state’s population skew towards retirement age. This population also wants proximity to grocery stores and pharmacies. When you consider that seniors are more active than ever, so, yes, those gyms and activity centers are still valuable.
When people are seeking an apartment, they often factor a lot of things to make their final decision, including any future financial benefit. This includes features that can save the tenant money in the long term, such as sheltered parking. So when you build an apartment building, it might be a good idea to build a garage for your incoming tenants, then. You’ll need to hire a firm with experience in custom garage floor installation so your garage’s structure is solid and long-lasting.
Security is important to everyone looking for a place to live. You’ll want to consider proper lighting around the property as well as ensuring that the building keeps those who don’t live there out. You might consider installing door buzzers to make your new residents more comfortable. Standard buzzers offer a way to ensure your residents can know when they have a guest.
There are also smart buzzers so that when a visitor rings the bell, the tenant can see who is at the door on their cell phones. There are other online security options that allow residents to keep an eye on their place while they were away. For example, even if your tenant is at work, they can get an alert if someone is trying to access their home using an app on their phone. Even if they can’t get to the property, they can notify you so that you can handle any issues for them. Having these options available to them before they move in can be a very attractive perk.
Anyone looking to rent an apartment in Miami is probably looking for a place with a pool. Now, building a pool might be costly, but it’s enough of a draw that it’s worth the investment. You’ll want a professional pool services team on hand for regular maintenance — you don’t want your pool to ever become unattractive for occupants.
Most leases for apartments are for one year, but if you want to attract tenants who might not be sure of their future plans, offering rental terms for flexibility is another feature that might help draw attention to your development.
Will you accommodate pets? With so many people owning pets these days, having a generous pet owner policy will help bring in tenants. Most pet owners anticipate paying a deposit because they understand there might be a need for carpet services. On the other hand, you’ll need to keep in mind those residents in your apartment building who don’t like pets around them. So in making a pet policy, the rules will need to be clear about which pets are allowed, and any size limits. When it comes to dogs, you should know that some breeds are considered dangerous and, in some areas, are illegal to own. You’ll need to be sure to do your research.
Technology is certainly a major consideration when you build an apartment building. Let’s face it — the easier it is to automate payments and service calls, the better. It’s easier than ever to create an app for your tenants where they can pay rent and even make a request for a visit from a handyman. If potential clients are coming from out of state, you might be able to use virtual tours to give them a sense of what to expect, and in an accurate enough way that they’d be willing to sign a lease from a distance, of what amenities they can expect. An online and automated application process can make it that much easier connect with eligible tenants.
If you expect that your apartment building tenants will consist of young children, creating spaces for kids will be beneficial. Building a playground — or having one nearby — lets young families know that this space is for then as well. Some complexes even provide sandbox areas and other spaces dedicated to kids.
In addition, tenants will want to know that any issues they come upon can be resolved quickly. That’s why you’ll want to have a company that specializes in plumbing services on hand, along with an electrician, a carpet cleaner, and pest control firm. This way, you can make sure your residents know that you’re putting them first.
Depending on the type of apartment building you are planning to build, the cost will vary. According to this report, If you’re looking at a low-rise building, which generally is about 1-3 stories and can have up to 50 units. The cost here starts at $150 per square foot.
A mid-rise complex tends to be around 10 stories and provides around 50 to 200 units. For these projects, the cost can be at least $175 per square foot to build.
Then there’s the high-rise apartment, and anyone familiar with the Miami landscape knows that this is prevalent in this city. They can range from 20 to 50 stories and start at $225 per square foot to build.
Based on this trend, the larger the project, the more it will cost to build. And it will take time to see any dividends from this investment, so to build an apartment building, you’ll need someone who can provide some financial support. If you have solid credit, it should be fairly easy to find a private lending institution with a fair annual percentage rate.
Choosing to build an apartment building in Miami is a solid business decision. To ensure that your investment is successful, you’ll have to build on a firm foundation. You’ll also have to make sure that your building is a draw to a wide spectrum of prospective renters. Building relationships with other professionals and keeping the needs of your tenants in mind can put you head and shoulders above the competition.