As we head towards budget season, multifamily property managers are preparing to review the financial performance of their properties, forecast their revenue, and estimate the expenses needed to maintain, renovate and modernize their portfolios.
The recent NMHC renter preferences survey report found that the majority of respondents wouldn’t rent a home without smart property technology such as a video doorbell, keyless smart locks and smart thermostats. It’s clear that technology should play an important role in budget considerations.
More widely speaking, centralization strategies and the growing adoption of self-guided tours (SGTs) should also be considered as managers drive to ensure operational efficiency and financial stability.
Here, we take a deeper look at some of the considerations multifamily property managers should prioritize when planning their budgets.
Centralization Strategies
One of the most significant trends reshaping the multifamily property management landscape at the moment is the push towards centralization. With rent growth expected to remain flat in 2025, or even potentially decline in certain challenging markets, property managers are under increasing pressure to find ways to reduce costs and improve efficiency.
Centralization can significantly help to streamline operations across multiple properties:
- The consolidation of tasks such as leasing, access management, maintenance requests, and resident communications is achieved when centralizing operations. This not only reduces overhead but also ensures a more consistent and professional experience for residents across all properties.
- There has been a fragmented and disjointed approach to technology in the multifamily industry to date that leads to inefficiencies. The unification of multifamily technology means that the disparate technological solutions that owners and operators are currently trying to manage individually are brought together. ‘In-unit’ smart amenities that include energy management and smart water solutions, and external tech such as perimeter and video security can be increasingly consolidated into one complete solution. This consolidation enables property managers to have a more unified view of their operations and enhances decision-making capabilities.
The Rise of Self-Guided Tours (SGTs)
Self-guided tours (SGTs) are becoming a staple addition to the multifamily tech stack, driven by consumer demand and the increasing need for flexibility.
- SGTs are more widely adopted now than ever before, offering prospective residents the convenience of touring properties at their own pace and on their own schedule. This has become a crucial differentiator in a competitive multifamily market.
- Squatters and fraudulent activity remain significant concerns, making it essential for property managers to couple SGTs with robust verification processes and security measures such as perimeter video and robust access management to further mitigate these risks.
- Integrating SGTs with CRM systems is crucial for tracking leads and managing follow-ups effectively. This integration helps ensure that prospects who take self-guided tours can be transitioned into the sales funnel, improving conversion rates and maximizing the return on investment.
Getting Ahead for a Challenging Market in 2025
Looking ahead, multifamily property managers will need to prepare for a potentially challenging market in 2025. Rent growth is expected to be flat or even decline in some areas, leading to increased pressure on revenue streams. As a result, property managers will need to consider offering concessions to attract and retain residents while finding innovative ways to cut costs.
The focus on multifamily technology centralization and consolidation is not only about cutting costs; it’s about doing more with less. By taking steps to improve operational efficiencies, property managers are able to redeploy staff to more meaningful tasks that improve occupancy and turnover and ensure their properties remain profitable.
As property managers consider their budgets for the upcoming year, the issue of fragmented technology will be top of mind. Consolidating tech vendors and ensuring that all systems work seamlessly together will be crucial for maximizing efficiency and maintaining a competitive edge in a crowded market.
With budget season looming, multifamily property managers will navigate a complex landscape. Centralization strategies, the adoption of self-guided tours, and the consolidation of technology vendors are all critical areas that will dictate success in the coming year.
Want to find out more? Read our blog on streamlining your multifamily property management business through centralization.
