Ready to maximize your rental property investment?
Here's how most landlords approach renovations: Hire a contractor, select some finishes, and hope for the best. Sometimes this works…
But let's be real. Half the time it doesn't.
Without knowledgeable commercial building design input up front, rental property renovations can quickly become costly, lack compliance and fail to perform how they should.
And that's where architects come in.
Partnering with experienced architects in Memphis allows you to work with professionals who know the intricacies of commercial building design from all angles. From structural design/build to zoning and permitting to space optimization to ROI. It's the difference between breaking even on a renovation versus adding value to your investment portfolio.
Before you renovate that next rental property, read this.
Here's what we'll cover:
Why Rental Property Renovations Can Go Wrong
5 Clear Signs You Need an Architect (Not Just a Contractor)
Ways Architects Can Add Value to Your Rental Properties
4 Things to Look for When Hiring the Right Professional
How to Get the Most Out of the Process
Let's get started.
Why Rental Property Renovations Go Wrong
Here's a fun stat that might surprise some landlords…
According to recent data, 23.3% of rental properties owned by landlords require or have required major renovations. That's almost 1 in 4 properties.
Yet, most rental owners take on those projects without proper planning.
And then come the headaches. Budget blowouts. Missing code requirements. Dissatisfied tenants who don't see value in the renovations.
It happens all too often. Nationwide, 39% of homeowners exceed their renovation budget due to unexpected issues lurking under the surface. Rental property renovations are no different. Without professional design insight, minor problems become major. One load-bearing wall gets moved and suddenly you've got an extremely expensive problem on your hands.
Skimping on expert design is how renovations go wrong.
An experienced architect will catch those problems long before they happen. And design around them. That's value you simply can't get from a general contractor, no matter how skilled.
5 Clear Signs You Need an Architect (Not Just a Contractor)
Does every rental renovation need an architect?
Of course not. Paint upgrades? No. Flooring changes? Nope.
Hang with me here. The reality is that there are certain renovation projects where hiring an architect is the right call.
Here's what to look for:
The renovation involves structural changes. When walls come down, floors are added, or anything else changes that may impact the structural integrity of the building, an architect needs to be on board.
Zoning/plans permitting will be required. If the city requires a stamped drawing to issue a permit, an architect is non-negotiable. Period.
A building is being converted. Whether that's taking an SF home and turning it into a multi-tenant rental or changing commercial space into a living environment, an architect will ensure everything is up to code.
Multiple units or large floor plans. Once a portfolio starts managing 5+ units or larger floor plans, the risk of going without professional oversight simply isn't worth it.
The renovation failed under a previous contractor. If prior renovations weren't done properly or up to code, hire an architect to assess the situation and draft the plan forward.
If any of these renovation scenarios sound familiar, hiring an architect is worth the investment.
How Architects Can Add Value to Your Rental Properties
There's a common assumption that architects are an unwanted cost landlords would rather avoid.
Until the numbers tell a different story.
With the right professional on board, renovation projects can increase the rent charged by up to 10% in the first year after completion. Read that again. Professional rental property renovations done correctly drive return. Plain and simple.
The right architect will look at a renovation through a lens that focuses on:
Space maximization. How can the floor plan work harder for tenants and justify a higher rental amount?
Overall building performance. What materials and building systems can be implemented to ensure the rental property performs over time while keeping maintenance costs low?
Market demand. What does quality commercial building design look like to future tenants?
Building code compliance. What are local authorities looking for and how do we build it right the first time?
It's that last point that most landlords tend to overlook. Yes, getting a renovation permitted is one thing. But keeping it approved is where most renovations get axed. Whether it's from improper procedures or just not knowing the rules, having an architect involved will save everyone from headaches down the road.
4 Things to Look for When Hiring the Right Professional
Finding a great architect is kind of like finding great tenants. Knowing what traits to look for separates the good from the bad.
So what should you look for when choosing a renovation partner?
Here are four things to keep in mind:
Look for an architect who specializes in rental properties or real estate investment. Not all architects are created equal. Just like a real estate agent that focuses on rentals versus sale homes, find an architect that understands the needs of multi-family versus single family.
Work with an architect that knows the local area. Building codes, permit requirements, and zoning can vary drastically from city to city and even within the same city. Make sure the architect has local knowledge and isn't learning as they go.
Communication is key. Like any relationship, renovation projects involve a lot of communication. Contractors, city inspectors, timelines, and budgets are just some of the moving parts. An architect who communicates effectively keeps everything on track.
Check their portfolio. Have they done renovation work before? Bad renovations can be difficult to fix and experience with high-quality remodels matters.
Need some help? Check out this guide on How to Find the Right Architect for your project.
How to Get the Most Out of the Process
Say the right architect has been found -- one who specializes in commercial building design for multi-unit properties. What's next?
Make sure these things are covered before jumping into renovations.
Set the budget upfront. An architect can design to the budget, but only if the numbers are clearly communicated from the start.
Get involved early. This goes hand in hand with setting the budget. The planning and design phase is where most renovation decisions are made. Want to move a wall? Now's the easy and cheap part to do it. Let the contractor move that wall later and it won't be cheap at all.
Think about long-term goals. The aim isn't just to finish a renovation -- it's to design a property that can perform better for years to come. A professionally designed rental property will retain its value longer, attract better tenants, and require less maintenance along the way.
The Bottom Line: When Do You Need an Architect?
An architect isn't an optional add-on to a renovation project. Think of architects as another tool in the toolbox that allows renovation budgets to be spent wisely.
Professional renovation projects have been proven to not only perform better, but they also provide real returns. Whether that's properly navigating commercial building design requirements, maximizing rental property floor plans, or making sure the permit gets passed without a fight -- architects protect the investment.
Ready to get started? Find the right architect and start designing a profitable property renovation.
