Unlocking Revenue Potential: 5 Strategies for Multifamily Success
Identifying technologies, solutions and practices that directly correlate to property performance is essential.
Coming out of the pandemic, the multifamily industry enjoyed an era of unprecedented rent growth. But the set it and forget it window has decidedly closed. With the rental housing now mired in a period of slow to stagnant rent growth, according to a recent Multi-Housing News report, operators are now forced to look outside their traditional sources to reach revenue goals.
Without reliable rent growth margins, organizations are seeking opportunities to squeeze more revenue out of their operations. Identifying technologies, solutions and practices that directly correlate to property performance is essential. Here are five strategies to tap into communities’ full revenue potential.
1. Outsource Essential Services
Aside from the installation costs associated with package lockers and package rooms, the real cost of onsite package management comes at the expense of the resident experience. Communities can rarely afford to allocate enough square footage to lockers and package storage to accommodate the current and climbing package volume, leaving packages in the open and unprotected.
As a result, property teams are forced to dedicate significant time to retrieving and distributing packages to residents, creating a convoluted and cumbersome hybrid process. The commitment required of onsite associates detracts from other responsibilities and basic resident service, and any package management missteps become a source of conflict with residents, putting reputation and retention at risk.
By partnering with a third-party, offsite package management provider, operators remove the clutter and conflict from their communities. And by putting residents in direct control of their deliveries, they facilitate the autonomous living experience residents crave. Finding opportunities to outsource time-consuming tasks benefits residents and onsite teams alike.
2. Streamline Operations
Without reliable rent growth, operators need their teams to function efficiently and effectively. Technologies capable of absorbing routine tasks and eliminating time-consuming processes empower associates to focus on leasing and resident retention. Solutions like self-guided touring and scheduling, online payment portals and third-party package management lift substantial burdens from teams and allow them to be more productive.
3. Insist on Integrations
Proptech exists to streamline almost all aspects of operations, but operators should be focused on technology that works seamlessly in the background and doesn’t take associates out of their regular workflow. If proptech is siloed and functions independent of property management software, its value can only be leveraged through deliberate actions from the property team and its impact is capped. In contrast, integrated technologies, as well as resident-facing solutions that initiate at move-in, work collaboratively with other proptech and support the revenue generation efforts of onsite teams.
4. Seek Sustainable Solutions
The value of individual proptech can be measured in its immediate impact and its longevity. If a solution must be periodically replaced or proves incapable of scaling to meet changing property needs and resident demands, operators need to account for those factors prior to implementation. Solutions that adapt and scale alongside evolving community needs provide invaluable sustainability and long-term value.
5. Focus on Resident Satisfaction
Without rent growth to power profitability, resident retention is among the best remaining revenue drivers. Operators must establish a level of convenience and comfort that residents can’t live without. Solutions that cater to renter preferences and put residents in control of their living experience — like parking management systems, amenity reservation platforms and package management apps — create a customizable lifestyle that can’t always be replicated elsewhere. Such solutions are key at leasing, but even more critical at renewal if residents aren’t willing to give up the advantages they enjoy at their current communities.
By employing proven strategies, operators can position their communities for success and financial growth, regardless of market conditions. Organizations that embrace new practices, leverage technology integrations, focus on the future and put residents first create a sustainable blueprint and poise themselves for long-term prosperity.
Source: Multifamily Insiders
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