The Growing Popularity of Class B Properties
It’s the trite but true phrase of the times: the pandemic changed everything.
It changed the way we work, and it changed where we consider living.
Changing economic dynamics have led to the rise in popularity of Class B multifamily properties. According to Multihousing News, “Class B communities have been attracting those residents who are gravitating away from the higher-end, (and more expensive) communities as they rethink their housing preferences and now seek more affordable and spacious housing options. The result is stable cash-on-cash returns with strong NOI growth for Class B communities.”
….And investors have noticed.
The article points out, “everyone needs a place to live and in challenging economic times, there’s an even bigger emphasis on value. Invest in Class B in 2021 and beyond is expected to provide stable cash flow and relatively consistent returns with perhaps less volatility than Class A and C products.”
The value of Class B properties is high and on the rise. Now is the time to make smart apartment upgrades that will help ensure this trend continues even after the pandemic restrictions are lifted, and the economy begins to bounce back.
The residents flocking to Class B properties are doing so to be financially frugal, but that does not mean they don’t want all the smart apartment amenities that newer and high-end properties offer. Investing in the technologies that encourage resident attraction and retention now will play out well for property owners and managers down the line. These same technologies can also help properties demand higher rents and increase the safety and security of multifamily properties through access control and video surveillance in common areas.
The right smart multifamily proptech can benefit both the property manager and the residents with capabilities including:
- Self-guided tours for interested potential residents
- Mobile control of smart in-apartment amenities like lighting and thermostat for residents
- Easy visitor access management for residents
- Mobile management and monitoring of the property and access control for the property manager or owner
Multifamily properties have a fantastic opportunity right now to rise to the occasion that COVID has presented. See how Kromer Investments is upgrading its properties with smart apartment technology.
If a retrofit project for your multifamily property is under consideration, there has never been a more opportune time to invest in smart apartment technology.