By Jeanne Bernt
Playgrounds can help attract and keep tenants in your units, helping to maintain steady income. From concept and design to materials and finish, playgrounds are built to provide value, year after year.Adding a playground to your property not only helps to bring in new tenants, but it also provides an amenity that your current residents will enjoy. Playgrounds may also allow you to implement a slight rent increase that will not only cover the cost of the structure in time, but also provides net operating income that increases the return on the investment. For example, if you add a $30K playground to your property, you can increase monthly rent by $10. If you have 100 occupied units, your playground pays for itself in 2.5 years—with a 15-year return of $150K—that’s five times greater than the original purchase price of the equipment. Furthermore, a playground adds current and future value, which is a win-win, which continues on to anyone who may own the property in the future. Adding a playground can even offset expenditures in your budget like roof replacement that won’t increase property value or add net operating income.
You’ll be sure to add more value and a higher increase of ROI and net operating income (NOI) with a playground over other popular amenities. Choices like a pool or tennis court require higher initial costs and more regular maintenance and additional costs over its lifetime. Unlike fitness centers and pools that require regular, even daily maintenance for staffing, cleaning, towels, and facilities that may be associated with them, a playground is relatively self-sufficient. Annual routine safety checks can be arranged with your local playground equipment rep to keep your playground safe and in working order.
When considering adding an amenity to your property, first see how much you can afford to spend, and review what the amenity will provide long-term. If you like the idea of adding a playground, but aren’t sure of your next steps, we can help you from beginning through installation and beyond.
To learn more, visit PlayworldSystems.com/housing