As I discussed previously, I have an on-going development project where I'm converting commercial space into 4 apartments. These will be three 450 foot studios and one large one bedroom with a study. I'm still waiting on permits which I will hopefully have in hand shortly. My architect found an exception in the code exempting my project from having a handicap ramp and a handicap parking space. That knocked off a few thousand off of the project which is very good news.

Many people who are doing this are fitting out their apartments on the high end level. The area my building is in isn't quite gentrified yet but will be moving in that direction at some point. My thought is to make them nice, but I question whether I need to dial it all of the way up to "high end".

What actually makes a place "high end"? I'm thinking it's focused on the kitchen and bathrooms. It is stainless steel kitchen fixtures, dishwashers and granite countertops? Would it really cost me that much more to go high end? Should I really be putting dishwashers in a 450 square foot studio apartment occupied by one or two people? I'm accustomed to clean and functional, not high end.

Good questions.

What are the economic levels of your prospective renters?

Do they make 50,000+ ? $70,000+ ? Types of occupations?

Do they not flinch at $1000 a month rents? $1500 a month? More?

Speaking for myself, I'd set the finish level appropriate with the rent you could get. How much do you anticipate getting?

"What are the economic levels of your prospective renters?"

If you are looking to attract the high end, say business executives they have a certain expectation. Even for studio they would expect washer/dryer (stackable), dishwasher even if it is a drawer, stove with microwave above, granite or quartz counter tops, wood floors, stainless appliances with ice maker.

GKarl, Thanks for the answers.

Just speaking for myself here. $40,000 a year for a single worker seems to be more Class B to B+ or maybe A- level for a rental depending on the town.

Those wages, again, depending on your town seem to be middle class at best. Where I'm at, (northern lower Michigan) that wage level would be middle class and rents here range from about $500 for class C to $900-1100 for B- ,3 bedroom places not on the water. On the water is, of course higher.

The upscale places are higher rent and the wages of those who can afford them and are willing to pay for upscale places are North of $60,000 a year.

I do think I'm just going to keep it "normal" for now. There's still a huge market for affordable housing and small spaces, so I can only save money and not hurt my prospects staying away from the french pastry for now. I just put a Project Source cabinet and a new laminate countertop I got from Lowes in one of my other apartments and the stuff cost me about $ 300 bucks. These will be all electric units. They're small spaces and my building is wedged in between two others on either side of me, so heating with electric shouldn't be too bad on the tenants.

I have a picture of this place in this site's gallery.

Unfurnished?

In a 450 ft studio, your kitchen will be small so you can probably do granite with scraps. It will be upscale and won't cost much.

My tenants are happy when there is a dishwasher, so fit one in. The tenants also want a garage with a garage door opener, but if you already have the building, that probably isn't anything you can add. Look and see if you can find room for a secure exterior locker for each unit. A place to securely lock up a bicycle or kayak.

For very little extra, you can get a slightly fancier sink for the bathroom. It makes a difference. Granite for the bathroom that matches the kitchen. Cabinets to match through out and it doesn't hurt to match the baseboards to the cabinets.

That small a space, you want your colors coordinated.

stacked Washer dryer in a closet is a MUST !!!!!!!!

I do agree on the washer and dryer IN the apartment, not coin-op. I get a lot of marketability from my in unit washers and dryers. Major selling point. People don’t like having to schlep laundry. What a PITA! And this would be whether it was upscale or not.

If Upscale studio is a thing then probably granite. Definitely a dishwasher, but probably an 18” would be okay. More expensive than a 24”, but less than a drawer one and more functional. Don’t get the cheap model. Get a decent one.

There are soundproofing mats that can go under hardwood. Or better quality underlayments have soundproofing qualities.

Tile in the bathroom would be a must. I think there might even be sound deadening underlayments for tile.

Speaking of sound for floors. I would spend the extra to make the units more sound deadened from each other. What an annoyance to spend the big bucks for a luxury unit and hear the neighbor doing whatever.

And work with a kitchen designer who has a good sense of how to maximize a space. Nothing like looking at Zillow ads and seeing horrid layouts in expensive units. Home Depot designers do get training in design so you don’t have to pay for one. Just try to find one with experience and seems to know what they are doing. A lot can usually be done with a small space. And the trend now in upscale kitchens is to use mostly drawers on the bottom, instead of the standard draw and doors.

If your area mirrors nyc then high end urban tenants, esp single studio millennial types do not cook, so DW and opulent kitchen are not a must (DW drawer is a good one). Gotta be up on the tile trends for the bath, no plastic surrounds. Is the other developer doing HW floors?

WJS just did an article about google making inroads w/ large Pm rental companies and smart apartments. You might get some bang for your buck with linked tstat, lighting and door entry.

High end to me includes concierge services in building (dry cleaning, pet care) and/ or amenities (doorman, gym, roof deck, etc.)

BTW 40K is close to low income by Fed guidelines (33.8k for 2 member household).