Two Essential Tools for Successful Multifamily Property Management

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MIAMI—A robust demand for multifamily units in the US is pushing the national vacancy rate down to 4.4%. These strong market fundamentals continue to encourage new development thus increasing the new construction pipeline. High supply paired with slowing demand, as the economy cools, should cause the market to moderate but remain strong as the rest of 2019 unfolds. With such a positive climate for multifamily properties, investors turn their attention to how well these assets are managed and maintained.

NOI Matters

“Net operating income (NOI), of course, reflects the income of the property and is the key to creating value,” says Chris Finlay, chairman and CEO of Lloyd Jones, a real estate development, investment, and management firm that specializes in multifamily and senior housing. “In order to run a successful complex, the property financials need to be accurate and current.”

Finlay added that the on-site property team is important and “needs to know they are running a business as well as a property.”

Property managers must keep expenses in line and maximize revenues in order to produce the greatest NOI, Finlay tells GlobeSt.com.

Strong Marketing

A strong marketing campaign is another important aspect of successful property management.

“We need a robust marketing campaign in order to attract a prospective customer, which in turn, hopefully translates into a resident,” explains Finlay. “The resident appreciates a property that is pleasant and consistently well-maintained.”

For example, a fresh coat of exterior paint plus interesting and quality landscaping can dramatically increase a property’s curb appeal.

Afterwards, it is the responsibility of the onsite property management team to “provide exceptional service to existing residents so that they love living there, will renew their lease and make referrals,” says Finlay.