Every month, Ascent Multifamily Accounting hosts a Mastermind group with multifamily industry professionals to exchange insights, discuss challenges and explore solutions and current trends related to multifamily operations.  

Attendees included owners from New York City, Dallas, Miami, Salt Lake City, Tulsa, Phoenix, Houston, Des Moines, Raleigh and other metros. Their organizations are primarily middle market operators with as many as 6,500 units.  

In one of our recent sessions, we discussed five key trends impacting the multifamily sector.

1. Staffing and Maintenance Solutions

Staffing and maintenance were at the top of many of the participants’ minds. Participants highlighted the importance of hiring knowledgeable and competent management to oversee property operations. The discussion also explored the merits of employing full-time maintenance staff versus outsourcing to third parties. The group agreed that for properties under 100 units utilizing a “floater” maintenance staff was beneficial. The participants shared their experience increasing compensation and incentives for property staff in order to hire and retain qualified employees. Increasing compensation was found to be especially important when it came to retaining key maintenance staff. The discussion highlighted how incentivizing leasing staff with bonuses helped boost occupancy rates.

Ascent provides detailed financial reports, helping property managers make informed staffing decisions and manage maintenance costs effectively. Ascent also offers payroll and administrative services to help managers streamline payroll and bonus structures, ensuring accurate and timely compensation.  

2. Rent Concessions and Occupancy Strategies through Slow Rental Seasons

Participants shared various strategies to maintain high occupancy, such as offering concessions like gift cards or TVs instead of reducing rent, in addition to offering bonuses on properties that are struggling to keep them leased. Participants debated the use of AI-driven pricing tools, such as RealPage’s YieldStar – a tool used for revenue-maximization.

The group discussed the importance of knowing the residents’ demographics and offering other alternatives versus raising costs, such as having residents pay their own utilities.  

When asked about strategies to keep renewals in place, one participant touched on the importance of property management strategies. “Property management strategies are the resident focus, the attention to detail. You know, the thank yous, the birthday text messages or phone calls and the resident events. That’s the personal touch,” he said. “The best strategy right now, in my opinion, is keep your residents happy, and keep your property full.”

3. Ongoing Inflation, Especially Insurance

Inflation is affecting the overall rental market, and rental insurance for clients remains a significant concern. The lack of straightforward solutions to manage these increases was a point of frustration, with attendees expressing hope that market adjustments would eventually provide relief.

Ascent’s experience with multifamily financials and detailed cost analysis enables us to recommend cost-saving measures and helps property managers anticipate and mitigate rising expenses.

4. Being Proactive with Managing Distressed Properties and Delinquencies

The management of distressed properties and delinquencies was another major topic. Strategies shared included stringent application checks, proactive communication with delinquent tenants and investing in property improvements to attract and retain quality residents.

Preventing delinquencies is the best way to avoid economic vacancy. Ascent’s accounting services provide detailed delinquency reports and track the financial health of distressed properties.  

By offering detailed reports on cash flow and operational expenses, Ascent enables property managers to develop effective strategies for preventing delinquencies and investing wisely in property improvements.

5. Managing Complexity in Financial Management and Tax Appeals

The group also touched on the importance of appealing property taxes and managing fluctuating loan interest rates. Effective financial management practices are crucial for maintaining profitability amidst these challenges.

“The perfect storm scenario of rising costs with labor, parts and materials, along with interest rates staying higher longer,” said another participant. “I think that patience right now is the name of the game. Stick to your disciplined investing.”

At Ascent, we ensure that owners, property managers and investors have accurate and up-to-date financial information, providing a clear overview to gage ROI and facilitating better decision-making and financial planning.

The insights from our mastermind group help owners navigate challenges faced by multifamily property managers today.  

Ascent sponsors regular mastermind groups to help owners, property managers and investors to stay ahead of industry trends and navigate the complexities of the multifamily sector. Participants gain the confidence and clarity to optimize operations, control costs and enhance profitability and sustainability.

If you would like to join the Ascent mastermind group, email me at mike@ascentmfa.com.  

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