As a property manager, you know that maintaining your property is key to ensuring its long-term success. This is why having a capital improvement budget is crucial.
A capital improvement budget is a plan that outlines the property’s upcoming improvements, repairs, and maintenance projects. By having a plan in place, you can ensure that your property remains in excellent condition, and you are not caught off guard by unexpected expenses. In this blog post, we’ll discuss the top 5 focus areas for your property’s 2024 budget season.
Exterior Maintenance and Landscaping
The exterior of your property is the first thing people see when they arrive. Therefore, it’s essential to keep it well-maintained and attractive. Curb appeal matters, and investing in exterior maintenance and landscaping projects can increase the value of your property.
Examples of exterior maintenance and landscaping projects include pressure washing, painting, installing new lighting, planting flowers, and pruning trees. These projects not only enhance the appearance of your property, but they also show that you care about your tenants’ environment.
Energy Efficiency and Sustainability
Increasingly, sustainability is becoming a significant factor in property management. As the world becomes more environmentally conscious, investing in energy-efficient and sustainable improvements can benefit both the environment and your bottom line. Energy-efficient upgrades can help reduce energy costs, while sustainable improvements can decrease your environmental impact. The American Council for an Energy-Efficient Economy estimates that the average ROI for energy-efficient upgrades is 20 percent.
Examples of typical projects that can improve energy efficiency and sustainability include installing solar panels, replacing old windows with energy-efficient ones, upgrading HVAC systems, and installing water-efficient fixtures and irrigation systems equipped with control functions.
Safety and Security
Ensuring the safety and security of your property’s residents and visitors should be a top priority, especially in a time when crime rates have been on the rise. Recent statistics indicate that crime rates in the United States have seen an unfortunate upward trend in recent years. According to data, instances of theft, burglary, and other criminal activities have increased across the nation. There was a 28.64% increase in U.S. crime rate from 2019 to 2020.
In light of these unsettling trends, it is crucial for property owners to take proactive measures to protect their tenants and create an environment where individuals feel safe. By implementing comprehensive safety and security improvements, you not only prioritize the well-being of your tenants but also enhance the overall desirability of your property.
Such improvements include installing security cameras, adding exterior lighting, and repairing sidewalks and parking lots, to reduce liability from tip and fall hazards.
By investing in safety and security improvements, you send a clear message to your tenants and prospective renters that their safety is paramount. This proactive approach not only creates a sense of security but also helps attract and retain tenants who prioritize safety. Building a reputation as a secure and well-maintained property increases its value and positions it as an appealing choice for individuals seeking to purchase or lease.
Technology Upgrades
Technology is becoming increasingly important in property management. In today’s digital world, tenants expect to have access to the latest technology. By investing in technology upgrades, you can improve your property’s efficiency and resident satisfaction.
Installing smart thermostats, energy efficient fixtures, keyless entry systems, and high-speed internet are a few examples of technology upgrades that can improve your property’s energy efficiency, security, and overall functionality.
Community Amenities and Common Areas
Creating a welcoming and enjoyable community atmosphere is essential to tenant retention. By investing in community amenities and common areas, you can increase resident satisfaction and attract new tenants.
Examples of community amenities and common area improvements include installing a fitness center, adding or improving a pool and pool deck, upgrading the clubhouse, and installing outdoor seating areas. All of these projects, which can be lengthy and costly, need to be budgeted and planned for well in advance with a reputable contractor. Undertaking these projects not only enhances the quality
Create a Capital Improvement Budget Soon
Focusing on these five areas in your capital budget will help improve your property for 2024.
Contact DCPS to find out how we can help you make improvements to your commercial property.
