Beyond Rent Hikes: How Small Upgrades Unlock NOI Growth
Small But Mighty… And Cost Effective
When property owners think about boosting Net Operating Income (NOI), the first instinct is often raising rents. While rent increases can certainly drive revenue, they aren’t always the best or most sustainable option—especially in today’s market, where renters are more selective and value-driven than ever.
But what if there was a way to increase NOI without increasing rent?
Small, strategic upgrades to apartment interiors can drive higher retention, justify premium pricing, and improve operational efficiency—all without the risk of pricing out potential residents.
The Hidden ROI of Small Upgrades
Residents don’t just sign leases based on flashy amenities—they sign (and renew) based on how functional, comfortable, and livable their space is. According to the 2024 Greystar Design Survey:
📊 88% of renters say a walk-in closet is a must-have.
📊 63% of renters would pay more for improved storage solutions. $50-$75 More per month!
📊 Well-designed interiors can increase renewal rates by up to 10% (J Turner Research).
The connection is simple: Residents who love their living space are more likely to stay.
Every move-out costs an owner $4,000 on average between marketing, make-ready costs, vacancy loss, and staff time. Even a 1% increase in retention can add thousands to NOI annually—far more than a rent hike alone.
What Kind of Upgrades Actually Move the Needle?
Not all upgrades are created equal. The key is investing in enhancements that improve daily life while keeping costs manageable.
Logic Closet By Spatia Designs
Here are some high-impact, low-cost upgrades that drive NOI growth:
✔ Closet Systems That Maximize Space – Walk-in and reach-in closets are top resident priorities, and a well-designed storage system can add real value to any unit and your property as a whole.
✔ Modern Lighting Fixtures – Upgrading from outdated fixtures to LED lighting improves energy efficiency and creates a more premium aesthetic.
✔ Smart Thermostats & Keyless Entry – While smart tech isn’t for everyone, practical tools like thermostats that save on energy costs or keyless entry for seamless access are widely valued.
✔ Bathroom & Kitchen Fixtures – Swapping out old faucets and cabinet hardware for modern alternatives instantly elevates a unit without major renovations.
The NOI Equation: Small Changes, Big Returns
Instead of focusing only on rent hikes, multifamily owners should ask:
💡 How can I increase NOI by enhancing what residents already use every day?
🔹 1% retention increase = $250,000 annual savings on a 1,000-unit portfolio.
🔹 Faster lease-ups = Less downtime and fewer costly vacancies.
🔹 Lower maintenance costs = Upgrading durable, functional features leads to fewer work orders and reduced staff workload.
Small upgrades create real, measurable NOI improvements—and unlike rent hikes, they benefit both residents and owners.
Invest in the Details, Reap the Rewards
In a market where supply is rising and renters have more choices, the competitive edge goes to properties that prioritize livability and long-term value.
A small investment in practical, high-impact upgrades can pay off far more than simply raising rent—in higher retention, reduced turnover costs, and stronger NOI growth.
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