Top 5 Multifamily Renovation Mistakes That Cost You ROI
A good renovation makes your property look better. A great renovation makes it lease faster, operate smoother, and keep your tenants happy for longer. The difference? Intentionality.
Over the years, we’ve seen what works, and what doesn’t, when repositioning multifamily communities. Here are the biggest mistakes that can derail your ROI, with real-world examples (and what to do instead).
Designing Without a Business Goal
If your design choices aren’t rooted in your property’s revenue goals, you’re just spending money to spend money.
Example: We’ve seen owners install top-of-the-line chef’s kitchens in studio units marketed to students, who’d rather have more storage and durable surfaces than a six-burner gas range.
What to do instead: Start every design decision with a question: How does this drive occupancy, retention, or rent growth? Whether it’s selecting finishes that hold up to heavy use or rethinking layouts for better flow, design should always be a business tool.
Ignoring Your Demographic
Design for everyone, and you design for no one. The needs of Gen Z renters in urban markets are wildly different from those of young families in suburban garden-style communities.
Example: We worked with a client who wanted to add a massive coworking lounge to a property primarily occupied by families with small children. Instead, we repositioned that space as a flexible kids’ club and family lounge. Occupancy ticked up, and residents stuck around longer.
What to do instead: Get clear on who you’re serving and what they actually want. Talk to your property manager. Look at your lease data. Then renovate to meet that need.
Underestimating Time and Scope
Ask any seasoned developer: renovation projects almost always uncover surprises. Plumbing behind old walls, structural issues, even just long lead times on custom furniture, these delays eat into your lease-up schedule.
Example: We once took over a renovation mid-stream where the owner hadn’t accounted for local permitting delays for exterior improvements. The result was a beautiful but half-finished amenity deck that sat fenced off for months, right when prospective tenants were touring. Not exactly a strong first impression.
What to do instead: Build buffer time into your plan. Work with vendors who communicate lead times upfront. And partner with a design team that knows how to navigate supply chain hiccups and municipal red tape.
Value Engineering in the Wrong Places
Yes, everyone has a budget. But there’s a big difference between smart spending and cutting corners that cost you more down the line.
Example: One client chose a bargain-bin vinyl flooring for their high-traffic corridors. Within a year, it was warped and scuffed beyond repair and replacing it disrupted residents and strained the maintenance budget.
What to do instead: Invest in the finishes and furniture that see the most wear and tear. Opt for commercial-grade upholstery in lounges, durable quartz instead of laminate countertops, and fixtures with long manufacturer warranties. Short-term savings are rarely worth the long-term headache.
Forgetting Your Brand Story
You’re not just renovating a building; you’re shaping an experience. Spaces that feel cohesive and intentional stand out in crowded markets, especially when prospects are deciding between five similar properties.
Example: We repositioned an aging urban mid-rise with a great location but zero identity. By weaving in local artwork, custom wayfinding, and subtle nods to the neighborhood’s history, we transformed it from ‘just another apartment’ into a building people connected with. Leasing velocity jumped by 30% in the first three months post-renovation.
What to do instead: Think beyond paint colors. Use design to tell a story that resonates with your market, whether that’s celebrating local culture, creating a sense of community, or showcasing sustainability. When your space feels memorable, it leases faster and retains longer.
The Bottom Line
Renovating multifamily properties is one of the most powerful ways to reposition your asset—but only if you do it with strategy. Start with your goals, know your renter, spend where it matters, and never underestimate the story your space tells.
Ready to turn your renovation into more than just a facelift?
We’ll make sure your next project doesn’t just look good, it works hard for you, too.