PRESENTED BY SWTCH

Propmodo Technology

By Franco Faraudo · Apr. 11, 2024

Greetings!

This week’s email is supported by SWTCH, a pioneer in EV charging solutions for multifamily and commercial properties across North America. They help building owners and operators deploy EV charging that optimizes energy usage and revenue at scale using existing grid infrastructure.

Traditionally, large multifamily landlords relied on on-site teams for the best resident experience. But now, economic pressures and new technologies are driving a shift towards centralized management, as we explore in this week’s Propmodo Technology email. Centralization promises cost savings, but risks include reduced service quality and security gaps. Despite these risks, major players are finding success with centralized models, potentially revolutionizing how multifamily buildings – and even single-family homes – are managed.

Be sure to check out our other multifamily property management tech articles, including how technology is helping optimize new development feasibility studies, the rising value of electric vehicle charging stations, and strategies to accelerate lease-ups.

Now, let’s go!

Multifamily Owners Are Centralizing Operations in Lieu of On-Site Teams

Multifamily buildings have often been divided into two categories: buildings that are big enough to support an on-site management team and ones that aren’t. Traditionally, large multifamily landlords prefer the former because of the way that on-site teams are able to provide a better resident experience, reduce risk, and help buildings lower vacancy. But the slowing multifamily market and new technologies are causing many large landlords to consider changing their business processes and centralizing at least some of their building management teams.

There are obvious cost savings that come from consolidating on-site leasing and management teams into one centralized office or call center. More buildings can be managed by fewer people, and some of the office space used by on-site teams can even be converted into additional units. But there are also pitfalls. Removing onsite staff can result in a reduction of service quality that can cause bad reviews, lower retention, and even price reductions. Removing oversight can also call the attention of bad actors who can damage property or engage in unlawful acts.

But some of the biggest multifamily owners are experimenting with ways to centralize at least some of their operations in a way that doesn’t negatively impact the resident experience or leave the property exposed to loss. Avalon Bay has experimented with eliminating leasing teams from one of its multifamily concepts in Maryland since 2021.

The pandemic led them to try self-guided tours. The success of their online booking and showing technology gave them the idea of eliminating the on-site leasing team altogether. The results have been positive, at least for the select properties that they have tried it on. The property in Maryland that they first experimented with was designed to reduce costs and provide more affordable rents, so tenants were likely more accepting of less on-site help than more luxury properties.

One of the main benefits of centralizing leasing teams is the reduction of employee turnover, something that has always plagued the multifamily industry. “Our turnover rate in leasing has gone way, way down,” said Kim Nicholson, Senior Director at Greystar. “That’s a huge win because you don’t have those onboarding costs because you’re not consistently turning over the staff.”

Being a leasing agent can be a lucrative career, but it doesn’t always provide the most steady income. When leasing is struggling, commissions go down. But when leasing is doing well, commissions can also go down. “You have rock star leasing agents who are crushing it, but when the building is completely leased up, they get bored, and then they’re gone,” said LCOR’s Chief Operating Officer Mike Hogentogle.

As multifamily owners look to grow their portfolios, particularly in an area where they already have multiple properties, they can use centralization to expand their search to buildings too small for on-site teams. This trend of centralizing management could even help owners incorporate single-family homes into their portfolios. On-site teams will always be important to help keep a building safe, enjoyable, and profitable. But as technology like AI and computer vision become more available we might start to see more parts of building management being moved off-site.

PRESENTED BY SWTCH
Multifamily EV Charging: 7 Questions to Consider

More tenants are looking for EV chargers to be installed at multifamily properties. But EV chargers come with some interesting challenges and questions that can make the project seem more difficult than it actually is.

Put yourself on the right track with this guide to answer the 7 most important questions you should ask when considering installing chargers at your property. With detailed info about what kinds of chargers to install, how to figure out the right number of chargers to add, ways to make the installation cost more manageable, and more, you’ll be well-equipped to succeed in deploying EV chargers to meet your tenants’ needs.

Bytes

🤑 Funded manager: New York-based Blueground, the property-management company that operates furnished 30-plus-day rentals, has raised $45 million in a series D round.

🚪 Latch=>door: The struggling access control company Latch has acquired a property management company of its own and is planning on changing its name to Door.com.

More Propmodo Technology

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