Amenities are no longer a “nice extra.” They directly affect rent growth, renewals, and operating margins. Class B and workforce renters care less about luxury and more about comfort, convenience, and predictable monthly costs.
For an investor, the real questions are:
- Which amenities help raise rent or renewals?
- Which amenities quietly waste CapEx and operating dollars?
- Where should the next improvement dollar go in 2025 and 2026?
This article focuses on Class B assets and gives clear actions you can take today.
Which amenities do renters actually pay more for?
Across most surveys, one pattern shows up. Practical beats flashy.
In Class B properties, the features that tend to support higher rent and better retention are:
Core in-unit features
- In-unit washer and dryer, or very good shared laundry
- Air conditioning that works well in hotter months
- Reliable high speed internet
- Decent sound insulation between units
Everyday building and site features
- Assigned or predictable parking
- Clean, safe hallways and stairwells
- Simple outdoor space, such as a small dog area or seating
Policies that matter
- Pet friendly policies with clear rules and fees
- Fair, consistent guest and parking rules
These solve real daily problems. They reduce complaints. They reduce unnecessary move outs.
What you can do today
- Pull a simple report on move-ins, move-outs, and renewals for the last 12 months.
- Compare rents and days vacant for units with and without key features like laundry and parking.
- Ask onsite staff which features prospects ask about most on tours.
This gives you a quick picture of what your current renters value most.
Which amenities usually fail to earn their cost in Class B?
Some amenities look impressive in photos. They do not always show up in the numbers.
Common underperformers in Class B and workforce housing:
- Large, high end gyms that are rarely full
- Co-working lounges that sit empty after lease up
- Game rooms or theaters with low real use
- Expensive lobby finishes that do not move rent
- Ultra-lux interior finishes in mid-priced submarkets
These carry cleaning, utilities, repairs, and sometimes staffing costs. They often do not support measurable rent premiums or better renewals.
Simple screening questions
Ask this about each amenity:
- How many people used this last week?
- Does it show up in leads, reviews, or tour feedback?
- Does it justify its share of ongoing cost and CapEx?
What you can do today
- Have staff count actual users of each common area for one normal week.
- List the annual cost of each amenity: cleaning, repairs, utilities, and staff time.
- Tag every amenity as “keep and improve,” “keep but shrink,” or “phase out over time.”
This helps you slowly shift spending away from low value spaces.
Where does smart tech really help in Class B buildings?
Technology can help you stand out. It can also become an expensive headache if it does not solve real problems.
For Class B renters, the most useful tech features are usually:
- Smart locks for keyless entry and fast rekey on turnover
- Smart thermostats that give better comfort and help manage bills
- Simple access control for entries and parking
- Strong Wi-Fi throughout the property
These features:
- Make daily life easier for residents
- Cut down on lockout calls and rekey costs
- Support a “modern but affordable” message
EV charging is also starting to matter in some markets. In many Class B locations, one or two shared chargers are a better first step than a full buildout.
What you can do today
- Pick one building stack or one small asset as a pilot for smart locks and thermostats.
- Ask your internet provider for a bulk or managed Wi-Fi quote and compare it to what residents pay now.
- If you know you have EV drivers, install a small number of Level 2 chargers in safe, visible spots.
Track leasing speed, renewal rates, and service calls in the pilot group versus the rest of the property.
How important are pet policies and outdoor space?
Pet ownership among renters has risen over the last few years. Pet friendly buildings often lease faster and keep residents longer.
In Class B properties, the most effective pet related elements are:
- Clear pet rules, deposits, and reasonable monthly pet fees
- A modest fenced dog area or pet relief zone
- Waste stations and trash service that keep grounds clean
Outdoor and lifestyle touches do not need to be fancy.
They need to be:
- Usable
- Clean
- Safe
Small wins can include:
- A few outdoor tables or a grill area
- Good lighting in walkways and parking
- Simple, secure package storage or lockers
What you can do today
- Compare your pet rules and fees to nearby properties in your submarket.
- If you track it, compare vacancy and renewals for pet vs non-pet units.
- Walk your site and pick one location that could become a basic dog run or outdoor seating area with limited spend.
These changes can help fill units faster and support modest rent premiums.
How should investors prioritize amenity spending over the next 12-24 months?
You can treat amenity planning the same way you treat a capital plan. The goal is to line up spending with clear, measurable outcomes.
A simple three step framework works well.
Step 1: Protect and upgrade basics
These are the features renters expect and talk about most.
- Laundry that is convenient and functional
- Cooling that works in real summer temperatures
- Stable internet and usable cell reception
- Parking that feels safe and predictable
Step 2: Add a few high impact, low complexity upgrades
These are visible during tours and improve daily life.
- Smart locks and thermostats in selected buildings
- Strong Wi-Fi or bulk internet
- Modest outdoor space or pet amenities
Step 3: Reduce or repurpose low value amenities
These consume capital and operating budget without clear payoff.
- Large, underused gyms
- Empty lounges and co-working areas
- Costly but “invisible” decorative spaces
What you can do today
- Create a one page amenity scorecard for each property.
- Score each amenity on usage, leasing impact, and cost.
- Set a 12-month plan with one or two upgrades and one or two reductions per property.
This keeps amenity spending focused on NOI instead of trend chasing.
How do amenities show up in NOI?
Useful amenities affect three things:
- Revenue
- Expenses
- Risk
Revenue effects
- Higher starting rent for units with laundry, better cooling, or smart access
- Modest premiums for pet friendly policies and simple tech upgrades
- Fewer days vacant when amenities match what renters actually want
Expense effects
- Lower turnover and make ready costs when residents stay longer
- Fewer maintenance calls about comfort, access, or parking
- Less spending to maintain oversized or underused spaces
Risk effects
- Less risk of functional obsolescence as renter preferences evolve
- More stable income in hotter or more weather-sensitive regions when comfort is strong
What you can do today
- Choose one property and build a simple table: amenity, annual cost, estimated rent impact, and estimated impact on renewals.
- Identify two amenities with the strongest financial case for investment.
- Identify one amenity with weak financial case to shrink or phase out.
This turns amenity planning into a clear NOI exercise instead of a design exercise.
FAQ
Are amenities still important in softer rental markets?
Yes. When markets soften, renters have more choices. Properties that deliver strong basics like laundry, cooling, internet, and fair pet policies are more likely to win leases.
Should Class B owners copy Class A amenity packages?
Usually no. Class B renters care more about value and daily convenience than luxury spaces. Big gyms, co-working lounges, and high design lobbies are hard to justify unless your specific submarket clearly supports them.
Is smart home technology required now in Class B properties?
It is not required in most markets. Targeted tech, like smart locks and thermostats, can still help leasing and operations. Piloting small upgrades first is a good way to test demand.
How can I tell which amenities my renters value most?
You can combine three sources. Survey current residents. Review online reviews and tour feedback. Compare your findings with national renter preference reports from groups like NMHC or large operators.
What is the best starting point if my budget is limited?
Focus on high impact basics. Laundry, cooling, and internet usually sit at the top of renter priorities. Then consider pet policies and simple outdoor improvements, which often have strong ROI for the cost.
