How To Maximize ROI on Multifamily Investments With On-Demand Fitness Amenities

According to the 2024 National Multifamily Housing Council and Grace Hill Renter Preferences Survey Report, around 70% of renters are interested in a swimming pool or fitness center. With so many people prioritizing exercise, these amenities are no longer nice-to-haves. Now, they’re essentials that can make the difference between tenants (re)signing leases or finding another place to live.

For property managers, adding fitness amenities is a great way to maximize return on investment (ROI). These services can help you attract new tenants and boost resident retention, improving your bottom line. Learn how to maximize ROI on multifamily investments with on-demand fitness amenities and explore key factors to consider.

The Rising Demand for Wellness in Multifamily Housing

If you spend any time studying multifamily housing trends, you know that residents increasingly care about wellness amenities. But they expect fitness centers to offer more than a squeaky treadmill or a few dusty free weights.

Unsurprisingly, the NMHC survey found that the majority of renters prefer cardio machines, such as treadmills and ellipticals. Additionally, 41% want TRX suspension training equipment, and 40% are interested in CrossFit equipment.

Of course, it’s not all about the equipment. Tenants also want fitness classes to help them exercise effectively and stay motivated. The survey revealed that 34% of residents view these amenities as important, if not very important. While you may not have the budget for a full-time trainer, on-demand fitness can help you meet this growing demand.

When you offer the right equipment and classes, you can appeal to prospective tenants who care about wellness. As more residents flock to your property, consider adjusting your rates to boost your ROI even more.

Maximizing ROI With On-Demand Fitness: Top Advantages

Investments in multifamily spaces can’t go wrong with on-demand fitness. These amenities offer many benefits for apartment complexes and other properties.

Unlike traditional fitness centers, on-demand solutions allow you to maximize your space. You can invest in compact equipment that residents can use for many types of workouts. For instance, tenants could use resistance bands for independent workouts or virtual strength training classes. Similarly, yoga mats could do double duty for on-demand classes and in-person instruction.

This versatile equipment doesn’t take up much floor space, leaving room for popular machines like treadmills. Plus, you can easily rearrange your fitness area to fit your community’s changing needs. One hour, it might be a wide-open space for toddler gymnastics; the next, a gathering spot for a virtual meditation workshop. The more in-demand activities you can offer, the higher your ROI will be.

Additionally, on-demand fitness is more cost-effective than traditional offerings. Instead of hiring an in-person instructor, you can give your residents access to thousands of virtual classes. Plus, you’ll never have to worry about paying overtime for evening and weekend sessions. Over time, these benefits can add up to a significantly higher ROI.

4 Steps To Boost Property Value with Wellness Amenities

Investing in multifamily housing can feel exciting but risky, especially if you’re new to offering wellness amenities. You might worry that residents won’t use your fitness offerings or that these features won’t impact rental demand. Don’t stress. Follow these simple steps to add modern amenities that residents genuinely want.

1. Assess Tenant Demand for Health and Wellness Needs

You may feel tempted to buy the most popular equipment or model your fitness center on local competitors. After all, most tenants want the same things, right? Not necessarily. If you make assumptions about resident preferences, you could end up with expensive amenities that no one uses.

Take the time to research the types of amenities your prospective residents want. The best way to do this is to ask them directly. For example, you could organize a focus group with a few tenants or send out a community survey.

2. Evaluate Current Fitness Trends in Multifamily Properties

Understanding wellness trends is key to choosing the right amenities. Look for industry reports from leading property management firms and multifamily organizations. For example, experts at the 2024 Wellness Real Estate and Communities Symposium predicted rising demand for healthy indoor air and play spaces.

Of course, many trends don’t last, so don’t feel pressured to invest in every hot new amenity. Instead, use broader trends to guide your research and focus on amenities that meet your residents’ specific needs. If they don’t care about a sauna, there’s no point in investing in one, no matter how trendy it may be.

3. Choose the Best On-Demand Fitness Solutions for Your Property

While nothing can replace a good old-fashioned treadmill, on-demand fitness solutions can help you expand your offerings and boost resident satisfaction. You can find thousands of virtual training sessions on everything from cardio to yoga. These classes give residents the flexibility to exercise on their schedule.

Outdoor fitness areas are another excellent multifamily housing investment. Consider repurposing common space into shared exercise areas. This might involve building a simple walking trail through your community or holding sunrise yoga sessions in a central green space. These areas can help build community and make working out feel more accessible.

Some multifamily properties offer smart health technologies, too. For example, Fitness On Demand provides a custom fitness app. Residents can use this tool to access classes, track workouts, and more.

4. Plan Financially for Integrating Fitness Amenities

Set yourself up for success by learning how to invest in multifamily fitness amenities effectively.

You may feel tempted to design a totally new multifamily fitness center, but investing too quickly can lead to costly mistakes. Instead, create a strict budget and gradually expand your amenities. For example, you might start by buying the most popular equipment, then branch out to more specialized amenities over time.

A mixture of traditional and on-demand amenities can help stretch your budget further. If your residents prefer fitness classes, you could offer in-person sessions on the weekends and virtual options for the rest of the week. That way, you won’t have to worry about straining your finances.

Measuring the Return on Investment

It’s always nice to see your residents using your amenities, but don’t just rely on your observations to measure your performance.

Calculating ROI for Fitness Amenity Integration

Return on investment measures the profitability of your fitness amenities. Here’s the basic formula to calculate this metric:

ROI = (Amount earned from the investment / Cost of investment) x 100%

Suppose you invest $15,000 in fitness amenities, allowing you to raise your rates by $20 a month. If you have 50 units, your annual ROI would be:

([20 x 50 x 12 months] / 15,000) x 100 = 80%

Impact on Resident Retention and Satisfaction

Tracking resident data can help you measure how fitness amenities influence retention rates and overall satisfaction. Monitor how often residents use the amenities, and analyze if frequent users are more likely to renew their leases. You can also use anonymous surveys to gather feedback and gauge resident satisfaction.

Fitness On Demand: A Game-Changer for Tenant Retention and ROI

As interest in wellness soars, providing the right amenities has become critical to success. The right fitness offerings will empower you to attract more residents and improve your community’s well-being. It’s a true win-win situation.

With Fitness On Demand, you can offer high-quality programming and other desirable amenities. Schedule a free demo today to learn more about how we can help you boost ROI and grow your community!