HOT & RELEVANT TOPICS
Allowing Renters to Pay More Flexibly
The model of renters paying a large sum at the beginning of the month is becoming dated. With more individuals working in nontraditional roles, including gig economy jobs, they can struggle to maintain all the funds for their largest expense precisely at the start of the month. The industry has reacted with FinTech platforms that allow renters to pay more flexibly, either by paying rent when they get paid or splitting up the payments incrementally. This has a dual benefit for the community, in that they receive fewer delinquencies and a higher percentage of in-full monthly payments.
How to Cultivate Culture at New and Existing Organizations
The pandemic hasn’t slowed down the conversion of older office, hotel and retail buildings into apartment communities. In fact, While culture can be a primary deterministic factor in an organization’s success, the blueprint to create it can vastly differ. At a new company, the culture can be built from the ground up with no preexisting perceptions. But it can take some time to build a foundation when operating with a blank slate. At an established company, a new leader has to strike the balance of maintaining the attributes of the existing culture, ridding any toxic components and implementing his or her own ideas. While they are separate challenges, each presents a unique opportunity.
Why Welcoming Pets Makes Good Business Sense
By now, the word is out that pet ownership continues to rise and that the apartment world should adapt with friendlier pet policies. But forward-thinking policies not only carry the benefit of more comfortable conditions for pets and their owners—they also can improve a company’s bottom line. Residents in pet-friendly housing stay an average of 21% longer than those in non-pet-friendly housing, according to the 2021 Pet-Inclusive Housing Initiative Report. That increases renewals, reduces turn costs and limits marketing needs to fill the new home. Additionally, operators can create a significant revenue stream by easing restrictions and welcoming more pets.
IN THE NEWS
Emergency Rental Assistance Surpasses 2.5 Million Payments
More than 520,000 renters and operators received emergency rental assistance in October, which brings the cumulative number of ERA payments to 2.5 million since the onset of the pandemic. The October payments alone totaled more than $2.8 billion and they are being utilized quickly. Much of these funds are projected to be spent or obligated by the end of the year. Additionally, states and local jurisdictions have been encouraged to resource other available funds—including the $350 billion in Coronavirus State and Local Fiscal Recovery Funds—to provide additional renter support.
South Leads US in Multifamily Investment Volumes
After experiencing a few quiet quarters during the pandemic, multifamily investment activity is booming once again. While apartment rents are up and vacancy rates are down in the Western U.S., southern markets lead the pack in terms of investment volumes, with Dallas/Ft. Worth and Atlanta at the top. Dallas had $7.7 billion investments while Atlanta followed behind with $6 billion. However, Midwestern markets have the best cap rates, offering better yields than other top markets. Overall, multifamily investment volume experienced a 34% quarter-over-quarter increase in Q2 to reach $52.7 billion, according to CBRE.
Twitter Acquires Would-Be Slack Rival Quill
In a move that could underscore its intentions moving forward, Twitter acquired messaging platform Quill. This has fueled speculation that Twitter could diversify from its open-ended consumer chatter platform by also offering a more-focused chat option. Originally, Quill was intended to compete with team-based chat platforms such as Slack, which is widely used by the multifamily industry. While the existing Quill platform will be dissolved, members of the app’s team are joining Twitter in cultivating the next iterations for the platform.