Key Finish Differences in Building and Renovating Multifamily For Apartments vs Condos

Though building and renovating multifamily for apartments and condos shares a lot of similarities, there are some significant differences that we as investors/developers need to be aware of. While costs such as framing, MEPs, insulation, and drywall to name a few are unlikely to vary between the types of projects (though there are some exceptions), there are many finish details that differ between the two that we need to think about while under construction to properly manage our budgets and financials.

Thus, in this article I wanted to highlight some of the key finish categories I think about during different types of for-rent and for-sale renovations/developments. I’ll go through the thought process of why I choose certain finishes or scope of work for for-sale projects vs rental projects and how they ultimately impact the product and final financials of the project. To really put context behind these differences, I’ll use the comparison of two projects I have going on right now close by to each other where I’m gut renovating one building to condos and the other to apartments. Let’s start from the beginning (I did also write a previous article about this topic talking about the differences from a layout perspective, so make sure you read that as well if you haven’t before)!

1.?????? Mechanical differences: Though in the intro I said that mechanical work is relatively similar, I thought I would point out some of the key exceptions. Though much of the rough work is very similar between the two types of projects in a gut renovation, there are a lot of more precise details that I will add into a condo project. On the electrical side, I will typically think about kitchen details as under cabinet lighting, under island lighting, and pendant lighting and bath details such as back-lit niches, heated floors, and power for backlit mirrors. In other parts of the home depending on the scale and size of the project we’ll consider doing under lighting on stair treads, back-lit soffits, and other smaller touches to deliver a high end look. ?On the plumbing side, in condos I’ll consider details such as pot fillers over the ranges and rainhead fixtures in master bathrooms. None of these are huge changes in terms of actual work, but they do help add high-end touches to my condo product vs apartments.

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2.?????? Windows: Let’s go to another big line item that I differentiate quiet a bit on, which is windows. With condos, I’m very aware of the brand choice I make with windows; I use a lot of Andersen and Marvin in my for-sale projects for the higher quality (fiberglass material) and the brand recognition with buyers. I also almost always pay a little more for black exterior/black interior colors for the windows for that extra color pop. On rentals, I’m of course much less sensitive to brand and colors, though I will still consider quality if it’s a long term building I plan on holding to avoid any issues. Still, as you may imagine if you’ve bought windows, brands alone can impact price drastically. For context with the two projects I mentioned, on the condo side I chose a black/black Andersen window whereas on the rental project I chose a less well-known brand black exterior/white interior option.

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3.?????? ?Kitchen Design: In kitchen design, the three big factors I’m going to highlight are going to cabinets, appliances, and countertops. For cabinets, on rental projects I will typically go with a cheaper standard white shaker cabinet that’s clean and does the job. With condos, I’ll usually go with a higher end type of cabinet; I’ve recently done a skinny shaker cabinet (which is a newer and more upscale type of shaker) as well as a slab cabinet for a clean, more modern look. Depending on the project, for for-sale product I may involve a custom cabinetry vendor to really give the project a high-end look. For the context of the two projects, on the rental project I went with white shaker cabinets whereas on the condo side I am going with a dual tone custom slab cabinet, and there is quite a bit of a price difference between the two.

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With appliances, as you can probably guess, on rental projects I don’t need to go with a high-end appliance package. I’ll usually go with a stainless steel GE or LG appliance package, with either a 30 or 36 inch fridge (depending on the number of bedrooms), 30 inch range, and most likely an over the range microwave. With for-sale product, I’ve done everything from paneled Thermador appliances to white stainless steel Café appliances to give a standout product and brand to the package. The sizes vary as well, with fridges being anything from 36 inch French-door style to 30 inch fridges with a separate 18 inch freezer column, stoves ranging from 30 to 36 inches, and microwaves typically being built ins. In my two projects, on the rental side I’m going with a GE stainless steel package that has a 36 inch fridge (since these are larger units) and 30 inch range, while on the condo side I’m deciding between a white Stainless Steel Café package and a Bosch appliance package. With these different types of brands, you can easily see a 2x and as high as 4-5x+ multiple on price between the different packages.

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Finally, the last big factor I’ll switch up in the kitchen will be the countertops. This factor is a bit more straight forward, as for me my standard is to do quartz countertops in any renovation (I do not use granite in any projects or rentals). Typically the biggest difference between condos vs apartments will be whether on my islands I decide to do waterfalls or not. As you might expect, in my apartment project I have no waterfalls whereas with condos I will have that feature.

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4.?????? Tile: The next big factor I am pretty sensitive with between the different types of projects is tile. We use tile in bathrooms (floor tile, shower floor and wall tile), kitchens (backsplash), and in other parts of the house for accents (above fireplaces as one example). With for-sale products, the right tile package is imperative to give the units a high-end look. Depending on the project, the upper range of tile on a per foot cost that I’ll look at is around $10 to the lower teens, though I’ve made some exceptions in the past depending on the tile. More prominent in single family development than condos, I’ve also used plenty of tile around areas such as fireplaces or on non-shower wall walls in bathrooms.

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In apartments, I typically try to keep this pretty simple, with a lower budget for all my basic tile needs (usually will be under ~$5-$6 per foot tile). I also don’t always put in a backsplash in rentals depending on the location and type of product I’m ultimately trying to deliver. In the two projects I’ve discussed, on the rental project I will most likely do a backsplash in addition to all the other standard tile because it is a premium area and product.

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5.?????? Miscellaneous Finish Carpentry, Fixtures, and Built Ins: There will be some other factors that come up that need to be decided on. With finish carpentry, if we’re doing for-sale product we may try to incorporate some more intricate details like wainscotting, coffered ceilings, and other details. With rental projects, we never really spend the money on these little details as they do not add additional value.

With fixtures and built ins, as you can imagine by this point in the article, I typically look to spend the extra dollars on higher end fixtures in for-sale product whereas with rental project I have no brand alliance and really just looking at price. Finally, with built ins, I’ll engage custom vendors to do build outs of items such as closets, pantries, and laundry rooms, whereas in rental projects these do not get worked on.