What Keeps Us Up at Night: New Technology, Vacancy Cost, and Competition… Oh My! Mar 30, 2018 Getting the recommended seven to eight hours of sleep every night is a challenge for most adults, independent of outside forces. With daunting thoughts of new technology flooding into the property management market, worries about vacancy costs, and concerns over the competition gaining an edge, how can anyone in the property management industry get some shut eye? We dug a bit deeper into each of these common concerns in order to gain a better understanding of how to overcome them. Making Sense Of New Technology Automation innovation in the residential property management industry has been a game changer in helping to make properties more profitable and efficient. With the growth of the Internet of Things (IoT), nearly anything can be automated. But while automation promises to simplify certain processes and is an attractive selling point to residents, can there be too much of a good thing? Although the multifamily industry has historically been slow to adopt change and new technology, the proven efficacy of technology in property performance has many in the industry taking notice. But knowing what technology to invest in can be a paradox of choice, leaving property management companies overwhelmed. As you consider investing in new technology, you can simplify your decision by answering these three questions: Will this new technology ease resident pain points? Will continuing to delay the automation of this process make you lose ground against the competition? Does your new technology partner have staying power to evolve with you as property needs change and grow? Answering these questions can help you identify and integrate with strong partners, putting you and your team a little more at ease. Overcoming Vacancy Cost While all properties aim for 100% resident retention, the reality is that there will always be some turnover. The goal is not only to increase retention, but also to prevent extended vacancies from impacting your property’s bottom line. Lengthy vacancies are incredibly costly to property companies. Factors such as make-ready costs, marketing, and move-in incentives can lead to costs surpassing $5000 per unit per month, according to a recent study by Greystar. While the proactive approach is to address resident retention with a long-term plan, there are other more immediate ways you can minimize vacancy costs. Marketing – Continuously marketing your units, specifically upcoming vacant units, through free options like social media and email referrals can be a good way to garner attention and lease them faster. Move Out Strategy – Although end-of-month move out has long been the strategy, a staggered move out system like the one utilized by UDR can shave time off of vacancies. Staggering your move-outs will prevent bottlenecks in the maintenance process. And scheduling Sunday move out instead of Friday ensures that the unit will be addressed immediately instead of waiting for the end of the weekend. Maintenance Processes – While many property managers wait for residents to leave before beginning turnover maintenance, having processes in place can minimize maintenance time. Having a move-in inspection at the time of leasing, and a move-out inspection when the 60-day notice is received, can help identify necessary repairs and make-ready estimates. Competition Forbes recently cautioned investors to keep up with property management technology in order to rise above their competition. With more than 34,000 property management companies to choose from, investors have a wide variety of options to explore. This crowded playing field makes choosing the right partner very difficult. There are so many things a property must keep up with to not only maintain current successes but also to pull in front of its competitors – marketing, maintenance, budgets, payment systems, compliance, resident attentiveness…are you tired yet? The list goes on and on. The slightest edge can help you get ahead, stay ahead, and finally put some of these concerns to bed. Putting your mind at ease when managing a property can be difficult. To eliminate some of your property management concerns, see how one top management company stays ahead with our case study. Go Recent Post Why Employee Engagement Is Essential to Property Management Success Buff Up Your Budget: Start Planning Now to Integrate BI in 2019 All Aboard! Overcoming Onboarding Challenges in a Multifamily Tech Purchase Subscribe Tell us your email address and we'll add you to the list. Subscribe If you are human, leave this field blank.