Summer is Ideal for MF Rent Growth

IRVINE, CA—Being prepared for apartment vacancies and having a plan in place early can allow for increased asset value and rent growth through new renters, Western National Property Group's VP of business development Nick Alicastro tells GlobeSt.com. We spoke exclusively with Alicastro, whose firm manages more than 171 properties across three states, about changes in multifamily property management, preparing for the summer leasing season and how to retain top-level talent in 2015.

GlobeSt.com: What trends are you seeing emerge for multifamily properties?

Alicastro: In 2015, it's not all about going green, but rather about staying green. Most properties have already started to make the shift toward becoming more sustainable, and this year, we anticipate this trend to continue to evolve. Property managers will continue to seek new and innovative strategies to reduce their bottom line, utilizing sustainable energy practices, which in turn help the environment. This includes integrating electric-car-charging stations within communities, energy-saving light fixtures and drought-resistant landscaping.

In addition to staying green, properties integrating larger, outdoor spaces where residents can socialize and interact is also a major trend that is here to stay. Residents are seeking environments that build a sense of home and community. This includes large gathering areas where residents can socialize, larger clubhouses, outdoor theaters, car-wash stations and dog parks, among many others. Integrating these additional community spaces can be a challenge in more urban areas, where we are seeing property managers developing creative ways to integrate these elements. With this in mind, we will see more communities utilize unique spaces such as property rooftops in order to offer these larger community spaces in urban settings.

GlobeSt.com: With regard to these trends, how is your firm staying ahead of the curve in order to ensure the properties it manages are up to date and are continuing to attract tenants and top rents?

Alicastro: The best way to stay ahead of the curve is to pay close attention to the market and always take notice of what your competitors are doing that is new or different. For example, we conduct weekly market-research surveys that provide us with up-to-date knowledge of what is taking place within the market. In doing so, we are able to ensure that we are staying current with industry trends as well as our competitors and any market conditions that may positively or negatively affect a property.

Once these trends have been identified, we determine which of our communities' demographics these shifts would appeal to. This targeted approach allows us to capitalize on the new trends in a cost-effective manner, by only integrating changes where they will be most attractive to that property's future and current tenant base.

GlobeSt.com: With the peak summer moving season now on the horizon, what should property managers do today in order to prepare their properties for the peak season and ensure they are maximizing the property's revenue for owners and investors?

Alicastro: During this time of year, most of our efforts our focused on renewals, managing lease expirations as well as property improvements. Prior to the peak moving season, we recommend property managers ensure that the exterior of their properties is in pristine condition and both minor and major renovations to the pool or community areas are completed. In addition, managers should ensure they are maintaining resident communication, striving to make as many points of contact with their residents as possible throughout the life of the lease. In doing so, any resident concerns will be addressed and resolved prior to a lease-renewal notice, which can significantly aid in resident retention.

Furthermore, depending on an owner's goal for a property, the peak summer leasing season can be the perfect opportunity to increase rents and shift rental structures as resident turnover takes place. Being prepared for vacancies and having a plan in place can allow for increased asset value and rent growth through new renters, who are attracted to the well-maintained and updated property.

GlobeSt.com: Do you have any tips for property managers on how to prepare, recruit and retain top-level talent in order to manage the shift in tenants efficiently?

Alicastro: At Western National Property Management, we strive to create a strong company culture that provides the right avenues for employees to grow and develop within their roles. We also place a significant emphasis on making sure our employees feel valued and appreciated. While pay clearly plays an important role in recruiting and retaining top-level talent, it is also paramount to offer these growth opportunities and to make sure your employees always feel valued in their positions.

When it comes down to it, no one knows more about a particular property than the on-site property-management team. By including the on-site team in the goals and decisions regarding the property, we are able to show them that their input and feedback are valuable to us. This open stream of communication between lower and upper management creates a collaborative team environment, which is essential to retaining and recruiting top talent.