As multifamily property managers, we have limited time to contemplate things we cannot change. There is a enough panic to go around, and around. Professionally, our focus should be on those things we can change at the property level; on how to move the needle in operations.
Other than job loss, and aside from those having to move down in price on their rent, I suspect turnover will slow as people hunker down during this current economic storm. Maybe this is just a wish (or pipe dream). We are creatures of habit, though, and these huge swings in the pendulum of governments and financial markets make people stand still for a time waiting for calm to prevail.
As property manager's our two-pronged approach to improving operations in any market conditions must focus on growing revenue and controlling expenses. Growing revenue even in a sideways economy is possible. Consider any and all incremental pathways to revenue growth.
With respect to controlling expenses, consider upgrading technological systems (software) as a method of "sharpening the pencil" on expenditures. Synergies are everywhere. Identifying these within specific assets is where to find the payoff in terms of costs savings.
Using revenue of one million dollars, moving the needle two-percentage points on revenue equates to $20,000. Moving the needle two percent on expenses (assuming 38% expenses) equates to costs savings of $7,600.
These are small numbers but multiply this at the portfolio level and they can be exponential. Small changes can reflect measurable positive growth in Net Operating Income.
In this economy where so many people are glued to CNN and Fox the progressive property manager will be in the trenches- growing NOI. And enjoying solid job satisfaction and job security.
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Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily management and acquisitions. This blog is intended to be informational only and does not provide legal, financial or accounting advice. Seek professional counsel. We discuss best practices in multifamily management and methods related to how to buy apartment complexes. Our focus is sharing strategies and tactics that can be implemented and measured. For more information, visit: www.MultifamilyInsight.com