Last month, I got a question that made me realize most new investors are approaching renovations completely backwards.
"Should I renovate units first or common areas first?"
Here's what we've learned from 50+ multifamily deals: Always start with common areas.
Let me share a recent example that shows why this small operational change creates massive NOI impact.
We acquired a 10-unit property in a C-class area last year - instead of diving straight into unit renovations like most investors do, we spent the first 30 days focused entirely on common areas.
The work:
Replaced the front entrance door
Updated hallway flooring and paint
Installed brighter LED fixtures
Added professionally mounted scent dispensers (yes, really!)
Total cost: $4,200
The results were immediate:
When existing tenants received their renewal notices with 12% rent increases, we saw a significantly higher renewal % than in a typical deal. Why? Tenants could see we'd invested in improving their living environment.
More importantly, when we started renovating vacant units two months later, prospective tenants were walking through updated, well-lit hallways that actually smelled inviting instead of musty corridors that screamed "budget apartment."
The lesson learned:
First impressions don't happen in apartments. They happen the moment someone walks into any common area.
Most investors obsess over granite countertops and stainless appliances while ignoring the hallway that smells like cat litter and the entrance door that looks like it survived a hurricane.
Make the first impression matter!