One of the key factors in a multifamily asset’s success is how the property is managed.
Well-executed property management maintains and increases the asset’s value and keeps residents happy, which helps with retention come lease-renewal time.
Strong property managers seek out ways to increase an owner’s profitability while still providing residents with excellent customer service.
On the other hand, poor property management can cost an owner money.
Managers who are lax about maintenance and repairs can lower an apartment community’s value and even its class level, which means owners may need to invest more in capital expenses to bring the property up to standard—especially if building codes are being violated.
Also, in the digital age, inadequate property management can saddle an owner with a bad reputation fast.
Customer service is more important than ever, and your image can be tarnished with a single unfavorable Yelp review or less-than-stellar tenant-survey results.
And that can really sour return on investment.
At Trion, we’ve found success in strategically operating a vertically integrated property management platform.
This structure has allowed us to ensure that employees at all levels and roles are committed to the same values and goals, which in turn strengthens our investment—as asset management and property management teams are all working together as one collective team.
When we invest in a multifamily property repositioning project, our in-house property management team also helps us to more quickly improve operational efficiencies and get them up to our high standards.
Whether partnering with a third party or hiring property management internally, it is critical to perform a comprehensive ‘due diligence’ of sorts, as you would with all other aspects of an investment.
Many investors underestimate how closely property management aligns with their bottom line.
Giving this aspect of multifamily investment the weight it deserves can have a significant positive impact on overall return on investment.