By Lisa Yeh
It is no surprise that when the market slows down, multifamily operators typically compensate with cost-cutting measures to bolster their margins. On its surface, this is a good plan. But while cutting back and finding efficiencies can help companies stay profitable, the belt tightening may ultimately hurt owners both in the short and long run.
For example, these cuts often come at the expense of customer service and staffing. These sacrifices usually reduce resident retention and hamper property performance leading to retention and occupancy challenges. Instead, multifamily owners should focus their attention on boosting revenue and maintaining occupancy and retention. Operational models that optimize revenue are proving more effective, and resilient to economic factors, than reactionary downsizing and consolidation of resident services. And multifamily owners are learning, now more than ever, that offering flexibility is one of the best ways to diversify a listing and tap into new revenue streams.
Read Lisa Yeh’s article in Propmodo.