For many multifamily property owners and project/renovation managers, the promise of a strong upgrade program is clear — higher rents, better retention, and stronger asset value.
Yet, all too often, renovations and CapEx programs don’t go as smoothly as the projections promised.
In this edition of Smart Build’s newsletter, we’re spotlighting the key pain points that derail renovation plans — and how to stay ahead of them.
1. Tenant Disruption During Occupied Renovation
One of the most persistent challenges: performing unit or amenity upgrades while residents remain onsite. According to a recent industry breakdown, tenant coordination ranks among the top issues for multifamily renovations.
Delays, complaints, and tenant frustration often arise when dust, noise, or restricted access disrupt daily life. The result? longer vacancy cycles, reduced renewals, and potential damage to reputation.
What to watch for
- Schedule work during low-impact hours;
- Communicate consistently with residents;
- Pre-plan staging and protect common area traffic.
2. Hidden Costs & Deferred Maintenance Bite Back
It’s tempting to delay upgrades or patch them as needed—but research shows that deferring maintenance often increases costs, risks, and timelines.
One recent article flagged how deferred interior renovations, roofing issues, and structural problems can inflate repair costs far beyond initial projections. In short: a “low-priority refresh” can quickly escalate into an emergency CapEx event that disrupts your cash flow and asset value.
Takeaway
- Build contingency buffers into your CapEx plan;
- Conduct baseline audits of building systems and hidden risks;
- Prioritize systems with lifecycle nearing end-of-life.
3. CapEx Programs & Strategic Planning
CapEx isn’t just a budget line — it’s a strategic tool for staying competitive and upgrading asset value. According to recent market commentary, CapEx projects are gaining traction because they offer more predictable outcomes than new construction, especially in constrained financing environments.
But without clear scope, metrics, and performance tracking, even CapEx can under-deliver.
Key success markers
- Clear linkage between upgrade and rent premium or occupancy gains;
- Data tracking to compare actual vs. forecasted ROI;
- Transparent communication with stakeholders.
4. Timeline, Material & Workforce Uncertainty
Another issue: even with well-defined scopes, timelines can slip and costs can shift. Whether it’s material supply chain issues, labor shortages, or unexpected structural surprises (e.g., plumbing, mold, framing) — these variables often make unit renovations and property-wide projects longer and more expensive than expected.
Mitigation strategies
- Secure materials and quotes early;
- Use phased scheduling to keep income units online;
- Partner with trusted contractors who have proven multifamily experience.
5. Keeping Scope Aligned With Tenant & Market Expectations
Upgrades must reflect what tenants value—and what the market will support. A recent article showed that well-placed renovations (kitchens, bathrooms, common areas) can recoup a high portion of cost, especially when aligned with tenant trends.
When the upgrade misses the mark (style, amenity, functionality), the return drops—and so does occupancy appetite.
Focus areas
- Understand current tenant desires in your sub-market;
- Balance cost vs. value: smart upgrades rather than full gut when feasible;
- Include amenities and tech enhancements where they drive differentiation.
At Smart Build, we work with multifamily owners, property managers, and renovation leaders to navigate these complex challenges:
- We help audit and prioritize CapEx items with ROI in mind;
- We design scopes that minimize disruption and downtime;
- We manage execution end-to-end—tracking budget, materials, workforce and quality.
- Your project isn’t just another renovation — it’s a strategic investment in your asset’s future.
Have a question about your next renovation budget, unit scope, or CapEx planning? Contact our team today, or dive deeper into Smart Build’s capabilities — check out our Company Deck below:
Kicking off the week with a smile — because even Mondays deserve a good laugh! 😄
When your resume as a painter says, “I am flexible.”😄
