In order to appeal to more prospective tenants, apartment complexes typically feature a variety of amenities, including pools, gyms, and clubhouses among others. With these amenities becoming more prevalent, developers who are seeking to stand out from the crowd are incorporating more unique amenities such as guest suites in their complexes. Here is what you need to know about these compelling features that are steadily gaining popularity in apartment complex developments.
What is a guest suite in an apartment complex? Guest suites provide a place to stay for friends and family members who come to visit residents. They provide access to a fully furnished unit and any available amenities that residents use. Guest suites generally smaller in size as compared to apartments in the complex and are typically located off the main building.
Depending on where you live, guest suites are rented out for varying prices, and they are beneficial in adding to the complex community’s revenue.
Guest suites are convenient amenities that are increasingly becoming popular in apartment complexes since they allow residents to accommodate guests and other non-residents without having to compromise their privacy. Here are the basics of a guest suite in an apartment complex.
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What to expect from an apartment complex guest suite
Apartment complex guest suites come in a variety of sizes. Depending on how big the apartment complex is, a guest suite can range anywhere from 270 square feet to 500 square feet.
There are various ways through which guest suites in an apartment complex can be utilized. For complex residents who intend to downsize, they can take advantage of the extra living space by having their older children who pay them a visit stay in the guest house so as to allow for more privacy.
Guest suites are also great for apartment complex residents who have friends or family visiting from out of town. Instead of having their visitors stay in a hotel room that is a distance away, residents can host them in the guest suite and cater to their needs easily since they are within the same compound.
Many guest suites in apartment complexes are frequently rented out through the community management body in place. When you compare costs, it is generally cheaper to stay in a guest suite rather than a hotel room. Furthermore, unlike in a typical hotel room, you have access to a full bathroom, a bedroom, closet, and kitchenette in most guest suites.
Guest suites are also beneficial to residents who don’t have a spare bedroom in their rental units. Limited space can be an issue especially if you frequently have overnight visitors, and having a guest suite allow you to host them comfortably. In some cases, you may simply want to have time to yourself when you have guests over, and having a guest suite in your apartment complex allows for this convenience.
Visitors and no-residents who stay in guest suites usually have access to a variety of amenities that are present in the apartment complex, allowing them to be as comfortable as possible. These amenities that they may get to enjoy include visitors parking, access to the pool, clubhouse, gym, etc.
The value of guest suites in apartment complexes
Guest suites are considered to be valuable to investors for a variety of reasons:
1. Short-term rentals that may result in long term residents
One of the biggest benefits of putting an underutilized guest suite to use is the opportunity to rent them to non-resident tenants. This allows the complex community to increase their revenue whenever residents are not using the unit. Before a non-resident renter moves into the guest suite, it is recommended that screened carefully to ensure that they will be able to keep up with the rental payments and have no criminal backgrounds. The stay of the non-residents is also insured in case of any damages that may be inflicted on the guest suite and its contents.
In some cases, you may even find that these short-stay guests may opt to sign leases for rental units in the complex after their stays in the guest suites are comfortable and enjoyable. All in all, it is hard to dispute the benefits of increased revenues and lase conversions as a result of taking advantage of a guest suite that was previously underutilized.
2. Prevention of losses as a result of vacancies
If an apartment complex that you have invested in experiences a reduction in rental payments due to the high rate of vacancies, incorporating a guest suite is a great solution to minimize the available inventory and maintain a steady stream of income. By incorporating one or more guest suites, an apartment complex adds a valuable amenity that residents can take advantage of, and when it is not in use, can help maintain the rental rates in case of vacancies. Keep in mind that this solution can only work effectively in areas where there is no rent control.
3. Income optimization
By creating guest suites, apartment complex communities that are in urban core markets such as San Francisco, Atlanta, Chicago, and Austin have reported significant revenue increases that managed to exceed that of their 12-month rentals on average. This could be attributed to the fact that guest suites offer short-term solutions to non-residents who opt for fully furnished units that allow for more freedom and privacy as compared to staying in hotels.
On average, there has been a significant increase in the number of apartment complex investors that are creating guest suites on their properties due to their numerous benefits to both residents and property owners. For residents, they provide the much-needed extra space for overnight guests, and for investors, they could be as a source of revenue as short-term rentals and also encourage these temporary tenants to seek long-term leases. All in all, guest suites are a viable option whether you are an investor or a short-term renter.