Multifamily property owners know effective property management is a key component of keeping their asset in the black – but what the heck is strategic property management?
The Communities by Compass team follows a few key strategies and best practices to create a strategic plan for success at each of the multifamily properties in their portfolios.
Tenant Engagement
A cornerstone of strategic property management is fostering positive relationships with tenants. Engaging with residents consistently, addressing their concerns right away, and providing exceptional customer service contribute to tenant retention.
That means going above and beyond basic functions of rent collection and maintenance management. Strategic tenant engagement means regular communication (about positive and challenging issues), responding to resident feedback, acting with urgency when it comes to maintenance, and organizing community events.
Fix It Up
Keeping multifamily properties in good condition is crucial for attracting and retaining tenants. Creating – and carrying out – a preventive maintenance plan ensures that repairs and replacements are handled quickly, which in turn reduces unexpected downtime and costs.
Regular inspections, swift responses to maintenance requests, and proactive property upkeep contribute to a great tenant experience.
Financial Management
Structured and consistent financial management is a significant component of strategic property management. Some of our property managers have taken over facilities where the prior financial tracking was kept in one spreadsheet or a word processing document – which made reporting and decision-making very difficult.
In one case, our property managers were onboarding a new property and found that tracking only existed on a whiteboard (which meant that accidentally erasing part of the whiteboard was essentially losing all record of tenants and their recent payment history).
The Communities by Compass team uses digital payment, tracking, and financial reporting software that covers all aspects of property expenses, including maintenance, utilities, marketing, and administrative costs. As a result, the team can provide regular reports and offer financial analysis for owners.
The software also assures accurate record-keeping – and a crucial backup if needed.
Decisions, Decisions
Property managers at Communities by Compass help owners make key decisions utilizing data analytics and technology. The owners can set key performance indicators (KPIs) such as occupancy rates, rent growth, and tenant turnover, which are tracked by property managers for decision-making functions.
This data-driven approach empowers managers to set competitive rental rates, identify areas for improvement, and implement targeted marketing and leasing strategies.
Leasing Up
Being strategic in multifamily property management means not waiting for tenants to come to you: it involves proactive marketing and leasing efforts to attract and retain high-quality tenants.
A comprehensive marketing plan should online and offline channels, social media, professional property listings, carefully monitoring your web presence, and leveraging local networks to reach potential renters.
Once those renters get to your website or physical property, streamlined and efficient leasing processes, including online applications and tenant screenings, ensure a smooth transition from prospects to residents.
Automate, Automate, Automate
Using technology and automation solutions is a winning solution for many property management headaches. There are several software systems that can centralize data, collect rent, input maintenance requests, automate simple tasks, and provide real-time insights into property performance.
Once integrated, the vast majority of tenants find online systems easier, more efficient, and better for their own record keeping. And, smart home technologies like keypad entry offer convenience and safety benefits for residents.
Takeaway
Strategic multifamily property management isn’t just a fun catchphrase: it means a holistic approach to managing the property.
Truly strategic property management encompasses tenant relationship management, proactive maintenance, financial acumen, data-driven decision-making, effective marketing, and smart technology integration.
By implementing these key practices, property managers can optimize the performance of multifamily properties, drive tenant satisfaction, and achieve financial sustainability for your multifamily asset.
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