Outdoor Amenities Are in With Renters
Tips for meeting the needs of your renters and differentiating yourself from the competition.
If you aren’t emphasizing your outdoor amenities when marketing your apartment communities, you might be missing out on a valuable opportunity to not only meet the needs of your prospective renters but also differentiate yourself from your competition.
“Outdoor spaces are a very important amenity right now, and we’re highly focused on it,” said Michael Zaransky, managing principal of MZ Capital Partners. “It started with Covid, (for) health and wellness, but has maintained its legs because renters like it.”
Whether the spaces are linked to apartments, such as large balconies or rooftop terraces, or they’re separate, such as parks or walking trails, they are valuable lifestyle amenities for renters. And apartment owners who offer them are reaping the benefits, in terms of both attraction and retention of residents.
“Because of work from home and hybrid working, people like more space in the outdoors during the day,” noted Zaransky. “These spaces also create a sense of community and friendship, which is always a good thing, both for the renter and for the property owner for renewals.”
Increasing interest
Zaransky said outdoor space is so important to his investment strategy that for the last 18 months, he hasn’t considered any acquisitions of properties without balconies or patios.
According to the 2024 NMHC/Grace Hill Renter Preferences Survey, 58 percent of survey respondents said they either were interested in rooftop space or wouldn’t rent at a property without rooftop space, up from 56 percent in 2022. Respondents were also asked how much more rent per month they would be willing to pay for certain apartment features or community amenities, and for rooftop space, respondents would pay an average of $55.97 more per month.
Zaransky is increasingly incorporating rooftop terraces at his properties. At The Jax, a 176-unit building in Chicago, the rooftop deck features an outdoor fire pit, grilling stations, lounge chairs and skyline views. “It’s a closing tool. On tours, even if people aren’t necessarily looking for it, it stands out, and then they realize it’s something they really want. It has a ‘wow’ factor,” he pointed out.
Best Practices For Outdoor Spaces
If you’re planning to incorporate outdoor spaces into a new development, or add them to an existing one, here are some things to consider:
Connect the inside to the outside. “We consider outdoor spaces an extension of interior space,” said Yoon Park, vice president of design for AvalonBay Communities. “We’re mindful of the transition zone.” Yoon suggested considering extending roofs so that residents are in a covered area before hitting open space. Another alternative is an outdoor exercise area adjacent to an indoor gym, which AvalonBay included at its AVA NoMa community in Washington, D.C. The proximity of the outdoor space invites residents to exercise both inside and outside.
Include both active and passive spaces. Some spaces—like outdoor gyms, pools and walking trails—are designed for active use by residents seeking health and wellness benefits or opportunities to gather with neighbors. Others, such as park areas or courtyards, are intended for more introspective or passive activities, or for work-from-home accessibility to fresh air. Be sure to include both.
Provide spaces for groups and individuals. “There’s demand for communal outdoor spaces, but there’s also that leftover feeling from Covid that people need their own individual spaces,” said Joshua Zinder, founder & managing partner of Joshua Zinder Architecture + Design. At 30 Maclean, a 10-unit rental in Princeton, N.J., Zinder included Juliet balconies off the apartment windows because even though space was tight, he wanted to give residents the opportunity to open the windows and enjoy the outdoors. “Gone are the days when you have a sealed-in box,” he said. “Fresh air is king, and I don’t see that changing any time soon.”
Standout spaces
Offering outdoor amenity areas, especially in urban settings where easy access to parks or hiking trails may not be available, can help apartment owners differentiate their communities from the competition.
“All of the new developments I see, unless it’s a high-rise where you can’t put balconies, are putting some kind of terrace in—and they’re massive now,” observed Megin Stokes, director of client services at Greystar. “Balconies are at the top of residents’ lists when they are looking for an apartment. Those are going first in our lease-ups as well.”
Lisa Gunderson, vice president of asset management for Bristol Development Group, said her company is putting more emphasis on outdoor areas to stand out to prospective residents. At Jewel at Santa Rosa Beach in the Florida Panhandle, Bristol included a spacious lawn that features outdoor ping-pong tables, cornhole and casual soft seating to encourage residents to gather outside. There’s also a grilling pavilion nearby. “This offering is a differentiator in the market,” noted Gunderson. “It provides community gathering alternatives other than just a pool deck.”
She said when prospects take a tour, or even see a rendering of the lawn, they get excited and can imagine themselves using it. The lawn also helps with retention efforts since it fosters a sense of community among residents and makes the community “stickier.”
