Last updated: December 2025
Quick answer
To maximize rent growth in small multifamily buildings, investors implement strategic value-add renovations, such as interior upgrades, curb appeal improvements, and amenity enhancements.
These updates can significantly increase rental income, boost NOI, and drive property value, especially when paired with private renovation financing.
Value-add renovations
In today’s competitive market, experienced developers know that value-add renovations are among the most reliable ways to drive cash flow and long-term equity in small multifamily buildings.
For properties between 10 and 30 units, a well-executed renovation plan can lead to:
- Higher monthly rents
- Better tenant retention
- Increased property value
- Stronger net operating income (NOI)
- Access to favorable refinance or sale terms
However, not all renovations are created equal, and not all investors have a clear blueprint for where to spend, what to prioritize, or how to phase renovations to minimize disruption.
This article lays out a value-add blueprint tailored for small multifamily properties and shows how to align your renovation strategy with maximum rent growth and ROI.
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What is a value-add strategy?
A value-add investment strategy involves acquiring a property below market value, improving its condition or operations, and increasing its income potential.
In small multifamily buildings, this typically means upgrading units, common areas, or amenities to justify higher rents.
The strategy works best when:
- Current rents are below market
- Units are outdated or poorly maintained
- Operating expenses can be optimized
- Demand is strong for upgraded rentals in the area
With the right renovations and efficient financing structure, investors can achieve forced appreciation, thereby increasing the property’s value through improvements rather than relying solely on market trends.
High-ROI renovation strategies for rent growth
Not all upgrades deliver the same return. Focus on renovations that tenants are willing to pay more for, and that won’t overcapitalize your investment.
1. Interior unit upgrades
These are often the most direct path to achieving higher rents, especially when the units are outdated.
Focus on:
- New flooring (luxury vinyl plank is cost-effective and durable)
- Modern lighting and fixtures
- Updated kitchen cabinets, countertops, and appliances
- Bathroom vanities and tile work
- Fresh paint in neutral tones
Typical rent increase potential: $150–$500+ per unit/month, depending on the market
2. In-unit amenities
Renters value convenience and tech, and small touches can make a big impact.
Consider adding:
- In-unit washer/dryer
- Smart thermostats and locks
- USB outlets or smart lighting
- Dishwashers or built-in microwaves
These features can make your property stand out, even in older buildings.
3. Common area enhancements
For buildings with shared hallways, lobbies, or outdoor spaces, these areas heavily influence first impressions.
High-impact improvements include:
- Updated hallway lighting and flooring
- Fresh paint or branding in entryways
- Secure mail/package delivery lockers
- Fitness room or bike storage (if space allows)
- Outdoor seating or BBQ areas
These upgrades add perceived value and justify higher rents across all units.
4. Curb appeal improvements
Tenants (and future buyers) often judge a property before they even step inside.
- New signage and exterior paint
- Landscaping and tree trimming
- Pressure washing walkways or driveways
- Modernizing building entrances or railings
- Parking lot striping or lighting upgrades
Renovation costs and planning per unit
Industry benchmarks on the cost vs value of renovation projects help investors evaluate which upgrades historically deliver the strongest return relative to cost.
On average, small multifamily value-add renovations cost $25K–$45K per unit, depending on the scope of work.
Value-add costs for small multifamily properties
| Scope level | Typical cost per unit | Typical rent increase |
| Light cosmetic | $15K–$25K | $100–$250/month |
| Moderate upgrade | $25K–$35K | $250–$400/month |
| Full renovation | $35K–$45K+ | $400–$600+/month |
Budget planning should include:
- CapEx line items per unit
- Soft costs (permits, design, engineering)
- Contingency buffer (10–15%)
- Draw schedule for phased renovation funding
Marquee Funding Group helps fund these upgrades with customized private loans based on ARV (after-repair value), not current income.
Should you renovate all units at once?
Phased renovations are often best for 10–30 unit buildings, especially if you want to maintain some rental income during the project.
Options include:
- Renovating vacant units first
- Timing renovations with tenant turnover
- Offering buyouts to long-term tenants in rent-controlled areas, while adhering to fair housing and renovation compliance requirements
- Releasing new units at premium rent to test market demand
Marquee’s renovation loans include interest reserves and flexible draw schedules, making phased upgrades easier to manage.
Boosting rent isn’t just about upgrades; operations matter too
Post-renovation, maximize rent growth by:
- Conducting a rent roll audit to ensure rents align with market conditions
- Improving tenant screening and lease management
- Offering pet-friendly policies or add-on services
- Investing in professional property management
- Using rental comps to support lease renewals or new pricing
Build cash flow and equity with strategic renovations
Renovating small multifamily buildings isn’t just about aesthetics; it’s about unlocking sustainable income and long-term value.
With a clear blueprint, a detailed budget, and flexible financing from a private lender like Marquee Funding Group, you can transform outdated apartments into high-performing investments.
Whether you’re upgrading 10 units or repositioning a 30-unit building, the right renovation strategy deserves the right financing partner.
If your LLC or corporation has completed 3+ projects, Marquee Funding Group can help you fund your next $750K–$5M+ renovation fast. Start your application today.
Frequently asked questions: Value-add renovation strategies for multifamily projects
Start with local market research and rental comps. Kitchens, bathrooms, and in-unit amenities typically deliver the highest returns. Speak to local property managers or leasing agents to understand what renters prioritize.
Yes. Marquee Funding Group offers renovation loans based on the property’s ARV, allowing you to finance both acquisition and upgrades in one fast-closing loan.
With clear documentation and a defined scope of work, Marquee can often close in as little as 5–10 business days, much faster than traditional lenders.
You don’t have to. Many investors renovate in phases, and Marquee can structure draws and interest reserves to match your timeline and minimize cash flow disruption.
Most investors refinance into long-term financing once rents are stabilized. Others choose to sell and capture forced appreciation. Your exit depends on your investment horizon and market conditions.