New Apartment Deliveries Increase Demand for Property Management
Apartment deliveries will increase 15% this year over 2018, and apartment property managers are preparing for the increased demand.
“New deliveries always mean an increase in competition, which can be good news for multifamily owners and for property managers who are able to be nimble and adjust their marketing strategies effectively,” Cindy Wick, regional VP at Western National Property Management, tells GlobeSt.com. “The key is to pay close attention to newly developed product and make strategic decisions on how existing properties will compete.” More affordable older product can still be a competitor for newly delivered assets, which are often significantly more expensive. Particularly in urban areas suffering from housing affordability issues, older-product is in high demand.
In addition, property management firms can analyze amenities or complete upgrades to a property to add competitive amenities. “Another strategy is to implement strategic upgrades that offer residents the amenities they want most,” says Wick. “For example, in many of the properties we manage, Western National Property Management has recommended convenience apps or pet amenities that require a relatively small capital outlay to set up and deliver strong return on investment as residents choose these properties.”
Quality service at the property level with residents is also the key for property managers to drive value and occupancy at older assets. “The most important way to compete with new product is to reinforce personal connections with residents in existing properties,” says Wick. “Every connection with a resident—be it online or in person—builds a rapport that can be the difference between a lease renewal or termination. By focusing on exceptional customer service and ensuring that all team members are properly trained to deliver this service, property managers will be ready to compete with new multifamily developments.”
New deliveries and the ubiquity of apartment living today has increased the importance of utilizing an onsite property management firm. “As more multifamily units are delivered, especially in the unique Los Angeles market, it is essential to have an experienced property manager in place to ensure that each property is operated both efficiently and smoothly,” says Wick.
As a result, property management responsibilities are expanding as well. “In addition to handling on-site maintenance issues and resident relations, the best property managers are also advisors and counselors to multifamily owners,” adds Wick. “In many cases, our firm has identified strategies to save owners thousands of dollars in property expenses, simply by installing sustainable features or changing rent rollover schedules. As development continues to ramp up, multifamily developers who engage an experienced property manager early on will be most likely to benefit from the depth of services available.”