Multifamily Market Trends Changing the Industry

Property management companies didn’t need to look far for extra challenges in 2022, and the most recent Multifamily State of the Industry Report says the current situation isn’t likely to change anytime soon.

If you’re looking for strategies to cope with employee turnover, renter turnover, or the ways COVID transformed how prospects search for multifamily rentals, that document is well worth reading.

Here are the primary take-aways.

Multifamily Properties and “The Great Resignation”

Every person on your team — from your executives to your leasing agents to your maintenance staff — are being presented with other opportunities at record levels. Property managers are reporting up to a 70 percent employee turnover rate.

The primary reasons onsite staff leaves include the following:

• Policy changes and communication overload
• Job overwhelm and lack of work satisfaction
• An aging workforce with few replacements entering the role
• Stress over the pandemic and fear of contracting COVID-19 (no hazard pay)

Given that replacing an employee is typically more troublesome and expensive than keeping the staff you have, the report suggests integrating automated renter communication with your property management system (PMS), qualifying leads through an online application process, and integrating automated advertisements with your internet listing service (ILS). Management should also provide personal development opportunities and a clear path to career development for employees.

Multifamily Properties and “The Occupancy Fallacy”

A RealPage study says occupancy rates hit an all-time November high in 2021. The fallacy here is that 60 percent of renters surveyed in that study say they plan to move within six months. High occupancy now doesn’t mean your units will remain occupied.

Not only are occupants moving to take new jobs or to escape the city, the uptick in online work-from-home jobs has them considering options for reducing rent by relocating to a “more affordable community.” As with employee turnover, it costs less to retain a renter than to gain a new one.

Suggested solutions given include these:

• Intensify your marketing approach with a multichannel approach
• Provide 24/7 communications access via your integrated PMS
• Get active on apartment review sites
• Use virtual tools to provide 3D tours of your property
• Upgrade your advertising with “sophisticated” targeting

Property managers should approach the occupant turnover dilemma by getting better at retaining current renters and by learning more about attracting new ones. Work the issue from both fronts, not just one.

The Renter Research Revolution

COVID prompted many people who were infrequent internet users to get better acquainted with online research and online purchases. Even though the threat and surprise of the pandemic is less of an issue, the realization that much can be accomplished online is here to stay. Your internet presence has never been more important to your renter acquisition and retention strategy.

Here are some of the ways the rental search procedure has changed:

• 53% of renters now consider more than six locations at once
• Reviews from prior renters are more important than ever
• Prospective renters now expect 24/7 responses to their questions
• 3D tours provide more leads per month than websites without 3D

Rapid communications are part of every point made in the Multifamily State of the Industry Report. Leasing agents and property management staff find it difficult to keep up with manual communications … yet renters expect around-the-clock contact.

FIRM Ways to Keep Your Multifamily Property Occupied

FIRM (FACS Incident Response Management) teams were streamlining the communications process well before COVID, and we can help you quickly upgrade your own strategy for occupant and prospect communication methods.

Don’t wait to see what happens with COVID. The world has changed, whether COVID remains or not. Call FIRM to find out how we can step in to simplify the process and assist in getting your multifamily property communications strategy updated.

Whether your main concern is keeping good employees or retaining good renters, FIRM can help. Here’s the number to call for more information: (866) 643-0237.