Land is becoming an increasingly scarce resource in Rio Grande Valley and other parts of Texas following decades of continuous residential and commercial real estate developments. As a result, high-rise apartments are becoming quite popular in the modern age of vertical development as cities and towns look to accommodate many people in multi-family apartments.

However, many first-time investors ponder if investing in a high-rise multi-family apartment building is safe from an ROI perspective. Consider these reasons before making a decision.

4 Reasons to Invest in a High-Rise Multi-Family Apartment Building

1. High-Rise Apartments Generate More Revenue

For starters, high-rise apartments typically contain more units than conventional apartments and condos, which are generally limited to 13 floors. Therefore, they can accommodate more tenants and generate much more monthly rental income than their counterparts.

2. High-Rise Apartments Attract Better Tenants

High-rise apartments are among the most expensive apartment types in the market. They offer amazing aerial views of the surrounding environment and the sky, especially for residents living on the top floors. Moreover, the elevated floors produce a quiet ambiance for residents by limiting noise from traffic and the hustle and bustle of the city.

Therefore, these apartments are much more expensive to procure on a rental basis, so they typically attract high-income individuals and wealthy families accustomed to living a luxurious lifestyle. In other words, you can generate much more income from a single tenant than those living in smaller apartments.

3. Less Turnover

Moving in and out of a high-rise apartment can be a nightmare, especially if residents have to move their furniture. Therefore, once tenants move in, they’re less likely to go through the hassle of moving again unless they’re no longer able to afford the rent due to income loss, relocating, or other exceptional circumstances.

However, investors should do their due diligence to ensure tenants don’t leave by providing them with basic amenities and meeting their end of the bargain regarding enhancing and maintaining tenant experience.

4. Multiple Amenities

The more vertical space you have in your high-rise multi-family apartment building, the more amenities you can offer tenants. For instance, if the building is on a commercial street, you can allow tenants to open stores or other commercial facilities to generate more income.

Similarly, you can include an indoor gym, sauna, bar, swimming pool, guest management system, laundry, and other facilities to increase your revenue streams.

Wrapping Up

High-rise apartments are becoming quite popular around the country as a more cost-effective alternative to luxury homes and condos. As a result, many investors are procuring these residential skyscrapers to boost their rental income, resale value, and tenant/buyer retention.

If you’re intrigued by the prospect of owning a multi-family building in Rio Grande Valley, head to CHRE and explore our vast inventory in every major city and town.