Multifamily: Property management FAQs
Attract and retain residents, boost operational efficiency and maximize the value of your Class A property.
Shifting demographics and evolving lifestyle choices are causing demand for multifamily properties to skyrocket. Meanwhile, savvy institutional investors (e.g., pension funds, private equity firms, real estate investment trusts, etc.) recognize how multifamily assets – in particular, premium, Class A properties – can diversify their portfolios and help them tap into a reliable stream of income.
But with market growth comes increased competition. It’s not so easy as “If you build it, they will come” – property management is the key to attracting and retaining residents, boosting operational efficiency and maximizing the value of this investment. Managing a successful Class A multifamily property requires strong expertise around:
- Exceptional customer service, with on-site teams trained to provide personalized experiences, activate amenities, and address resident concerns promptly
- Community-centric initiatives and social programming, which encourages resident engagement and fosters a sense of belonging within the property
- Effective property management software that optimizes operations, including leasing, accounting and maintenance, is crucial for streamlined processes
- Robust security measures and efficient emergency response protocols to cultivate a safe living environment
- Strong relationships with reliable partners, which helps ensure high-quality maintenance and repairs
- Strong financial expertise to manage budget, operations and resident retention in line with investment goals
The following are some of the more common questions many owners and developers like you have in mind when looking to get the most from your investment.
Q&A
- High-end branding and marketing: Effective Class A property managers (PMs) understand the importance of creating and maintaining a premium brand image. They know how to use storytelling to build emotional connection to their brand; establish an effective online presence (e.g., professional website, social media marketing and optimized online listings); and forge partnerships with other luxury brands, all with insights driven by market and resident data.
- Advanced technologies: Class A buildings incorporate more advanced technologies than other classes, requiring a deeper knowledge of how to deploy them across the property. An effective PM incorporates technologies such as smart home systems, keyless entry, automated package delivery systems and property management software to create a frictionless resident experience and even do their own jobs better. They also stay updated on emerging tech to modernize operations, attract tech-savvy residents, and ultimately stay competitive in their market.
- Premium experiences: Class A multifamily properties provide a range of premium amenities and services (e.g., fitness centers, pools, coffee shops, spas, etc.), and an expert PM will know how to make them come to life. Activating these amenities and services involves creating experiences that residents can’t get in their apartments, ideally in a way that reflects the unique culture surrounding the property. For instance, while residents may find an on-premises fitness center convenient, they’re likely to find even more value in a wine-and-yoga class that excites, delights and creates community buzz.
- Energy: Installing energy-efficient systems such as LED lighting, smart thermostats and low-flow fixtures can significantly reduce utility costs without compromising resident comfort. It can even help attract and retain more sustainability-minded residents.
- Technology: Integrating technology – such as property management software, online portals, mobile apps and more – can help automate communication, maintenance requests, financial operations and other processes for PMs, helping reduce administrative workload and improve operational efficiency. Self-service amenities such as package delivery lockers and virtual concierge chatbots can add convenience to the resident experience.
- Quality staffing: Class A properties are more sophisticated by nature, so it makes sense that the people managing them should be too. Hiring seasoned, data-driven staff to operate these more complex properties will help ensure efficient operations, proactive maintenance and personalized experiences for residents.
- A forward-thinking PM should use technology to collect and analyze data related to resident preferences, market trends, financial performance, and maintenance patterns. By harnessing data and the right KPIs, they can identify patterns and trends, make informed decisions and mitigate challenges before they arise.
- A preventive maintenance approach that uses data and historical patterns will help anticipate maintenance needs within the property. A proactive PM performs regular inspections, tracks equipment performance and addresses issues promptly. This approach minimizes the risk of unexpected breakdowns and helps avoid costly repairs.
- An expert Class A multifamily PM will stay updated on market dynamics and trends, including rental rates, occupancy rates and demographics. They will conduct regular market research to assess supply and demand, identify opportunities and forecast changes that may impact the property's performance.
- Forward-looking PMs should analyze resident behavior and satisfaction levels to identify signs of potential turnover. This will allow them to develop retention strategies based on data-driven insights, such as offering personalized amenities, maintaining strong communication channels, and addressing resident concerns promptly.
- The most effective PMs will focus on the most crucial KPIs and moments of truth in the resident experience. For example, only 20% of residents who were dissatisfied upon moving in became satisfied through lease renewal. The best PMs understand how to focus their teams to navigate these critical milestones successfully.
Spotlight on trends
- Regulatory changes: You may be unaware of zoning regulations, building codes, and other local laws that could affect your property. By failing to perform your due diligence and take a more proactive approach to risk management, you may suffer from compliance issues and increased costs.
- Rental fraud: Intentional misrepresentation and false information presented by applicants continues to get more sophisticated and increasingly difficult to detect. Without a rigorous screening process that examines and verifies income, employment and rental history through trusted sources, you could face myriad legal risks and financial losses— upwards of $25,000 per eviction in some markets —if you lease to a fraudulent applicant.
- Resident turnover: No doubt you want to retain residents as long as possible. But not all PMs have the experience or strategies in place to retain residents amid economic downturns, increased market competition, changing demographics and other socioeconomic developments.
- Strategic rental pricing: A detailed understanding of local market dynamics can enhance pricing strategies, maximizing revenue generation while maintaining healthy occupancy rates even amid market competition and changing demographics.
- Secure, stable technology: From electric vehicle charging stations to high-speed Wi-Fi, coworking spaces and better, more consistent cell phone reception, technological amenities can help attract more digital-savvy, career-focused residents who value convenience and connectivity. Ensuring secure connections adds value for those concerned about cybersecurity and identity theft.
- Activating high-demand, multipurpose amenities: Adding high-demand amenities like rooftop lounges, fitness centers and pet services helps attract affluent renters and supports premium rental rates. But the real driver lies in their activation: A rooftop lounge could hold “canvas and cocktails” painting classes, while pet services could partner with a local salon to create a spa day for their furry residents. An experienced PM will have a clear vision of how these amenities can serve multiple purposes from day to night and season to season so residents can use them year-round.