Technical building concultancy

Apartment modernizations

Modernization with higher rent and lower vacancy

Many older rental properties include cost-based rental units, where the rent is regulated according to the property’s operating expenses. This often means that the rent is below market level.

Through apartment modernization, the unit can be upgraded to a higher standard and subsequently rented out under Section 19.2. This creates the opportunity for increased rental income while also enhancing the overall quality of the property.

At DEAS, we carry out modernization projects with a focus on functionality, quality, and long-lasting solutions.

Value for property investors

A strategic apartment modernization can create value at multiple levels:

  • Higher rent and attractive returns
    Opportunity for increased rent and a typical investment return of 5–7%.
  • Lower vacancy
    More attractive units contribute to higher tenant satisfaction and reduced turnover.
  • Enhanced property quality
    Modernizations elevate the standard of the property and contribute to a more robust and attractive residential portfolio.
  • Experience and reliable execution
    DEAS has completed more than 6,000 modernization projects and has over 20 years of experience with apartment modernization in Danish rental properties.

CASE

§ 19.2 modernization

A 3-room rental of 75 m² was completely modernized according to § 19.2 with a new bathroom, new kitchen, new electricity drawn into the walls and full puttying and surface treatment of all walls.

Documented effect:

  • Previous rent: 1,117 DKK/m²
  • New rent: 1,800 DKK/m²
  • Total investment incl. VAT, vacancy and financing: 744,932 DKK
  • Documented return: 7.2%

We are here to help

If you would like to hear more about the possibilities for apartment modernization in your property or portfolio, please feel free to contact us.

Anne-Marie Adolph Larsen

Director, Commercial, Space Planning & Refurbishment

Email: ama@deas.dk
Mobile: +45 27 90 17 81

GET THE RIGHT ADVICE FOR YOUR PROPERTY INVESTMENT

Contact us for a conversation

Contact Client Manager, Susanne Randrup Madsen, on tel: +45 39 46 63 99 or email: salg@deas.dk for a conversation about the right solution for you and your property investment.

Write to our Client Manager