New research from the 20for20 Annual Survey and the 2024 NMHC 50 Report finds that 80 percent of third-party multifamily managers are centralizing operations, demonstrating a widespread industry shift toward efficiency-driven management models.

Additionally, the average portfolio size of the top 50 NMHC owners has decreased by 16 percent over the past decade, leading to an increase in smaller ownership groups entering the market. This shift has created a growing opportunity for owners and operators to take control through vertically integrating by self-managing their properties.

Unlocking the Power of Centralization in Multifamily Property Management

Centralization was also a topic of interest at Marcus and Millichap’s Multifamily Forum in Atlanta, Georgia on March 20^th. During one of the panels, a group of prevalent third-party management companies, owner operators and vendors discussed the merits and common struggles associated with centralization.

Changes in third-party management, shifting ownership structures and innovative business models are reshaping how properties are managed. As companies seek solutions for efficiency, cost reduction and improved service delivery, the need for streamlined operations has never been greater.

Centralization allows property owners to streamline operations, reduce overhead costs and enhance efficiency. It also provides greater oversight, cost savings and the flexibility to tailor property management strategies to their specific needs.

“We determined you didn’t necessarily have to be on site to get a great job done. It proved to be very beneficial for the teams on site to have that back-end support,” said a panelist.

This shift, driven by technology and operational efficiencies, has empowered owners and operators to take greater control over their properties through vertical integration.

Key benefits of centralization include:

•    Cost Efficiency: Reducing on-site staff and utilizing centralized teams help property owners lower payroll expenses while improving service quality.

•    Improved Oversight: Centralized reporting and data analytics provide property owners with better transparency into their portfolio’s performance.

•    Scalability: A well-structured centralization model allows owners to manage more units with fewer resources, making expansion more feasible.

•    Enhanced Resident Experience: Streamlined communication and service requests lead to improved tenant satisfaction and retention.

Companies that successfully centralize administrative functions see benefits in reduced costs, fewer errors and more efficient compliance management. A Texas multifamily management company reported annual savings of over $900,000 by outsourcing to Ascent Multifamily Accounting, allowing the senior team to focus on core business activities.

As Bruce Fraser of Elkhorn Capital Partners LLC shared, "Since taking on self-management, our entire portfolio has been up about 30 percent, and it has made a huge difference." ^[1] This shift has allowed them to optimize their processes and achieve significant growth.

While these advantages are compelling, successfully transitioning to self-management requires strategic planning, the right technology and expert financial oversight.

Common Hurdles in Self-Management—and How to Overcome Them

Despite the benefits, transitioning to self-management comes with challenges that must be addressed to ensure success:

·   Financial Management Complexity – Managing financial operations, from bookkeeping to compliance, can be overwhelming without dedicated expertise.

·   Technology Integration – Implementing property management software and centralized systems requires time and investment.

·   Staffing & Training – Reallocating or hiring personnel to support self-management can be a significant adjustment.

Operational Oversight – Owners must ensure efficient processes for leasing, maintenance and resident services while minimizing disruptions.

How Ascent Multifamily Accounting Solves These Challenges

One of the most challenging aspects of self-management is maintaining accurate, compliant and efficient financial operations. Without a dedicated team managing bookkeeping, accounts payable, budgeting and financial reporting, property owners can quickly become overwhelmed.

This is where Ascent Multifamily Accounting steps in to bridge the gap. By outsourcing bookkeeping and financial management to a specialized team, property owners can enjoy the benefits of self-management without the common pitfalls of disorganized financial oversight.

How Ascent Multifamily Accounting Supports Self-Management:

•    Accurate Financial Reporting: Gain clear insights into cash flow, profitability and operational expenses.

             Ascent has built a team of experienced property bookkeepers who specialize in multifamily property bookkeeping. With experience in all of the major property management software’s including RealPage, Yardi, Entrata, ResMan, AppFolio and more, our bookkeepers work within our clients software reconciling bank statement, paying bills and putting together the monthly financial packages that go to owners and investors each month.

•    Access to Best Practices: Ascent’s history of property management bookkeeping has given us a unique insight into what works and does not work when it comes to best practices in property bookkeeping. With this knowledge, Ascent helps their clients ensure financial records align with industry regulations and best practices.

•    Scalability: Grow your portfolio with confidence, knowing your financial operations can handle increased complexity. Ascent enables property owners and managers to focus on revenue-generating activities while ensuring financial operations are efficiently managed.

             As Ann-Marie Bomba, Founder of Topaz Asset Management, puts it, "Ascent’s services have streamlined operations, reduced costs, and supported our growth to over 2,000 units." ^[2]

•    Cost Savings: Clients have praised Ascent’s ability to reduce costs and improve efficiency. Roland Stewart, Founder of Paramount Investment Corporation, highlights the impact of working with Ascent:

"Their support over the past six years has allowed us to focus on revenue management and property operations, significantly boosting our bottom line."

For Lift Residential, outsourcing back-office support to Ascent became a competitive advantage. Alex Madsen, partner at Lift Residential, noted: "When pitching the company to potential partners, Ascent has become one of our strongest selling points." ^[3] The partnership allowed them to pursue new ventures and business opportunities with confidence.

"Ascent's flexible cost structure adapts to our changing unit numbers, easing the burdens of staffing fluctuations in response to business needs,” said Ben, chief financial officer at Stellar Residential. “And thanks to Ascent, we can focus our efforts where they’re needed most. Their support has freed up my time significantly.” ^[4]

Embrace the Future of Property Management

The shift toward centralized operations and self-management is more than just a trend—it’s a strategic move that can empower property owners with greater control, improved efficiency and significant cost savings.

By leveraging expert financial support from Ascent Multifamily Accounting, owners can confidently transition to self-management, knowing their accounting and financial operations are in capable hands.

If you’re considering taking control of your multifamily portfolio and want to explore how professional bookkeeping services can make the transition seamless, contact Ascent Multifamily Accounting today. Empower your self-management strategy with expert financial oversight and unlock the full potential of your investments.

^[1] In this episode of the Multifamily Management Excellence Podcast Mike Ballard talks to Bruce Fraser about his path to self-management and a macro prospective of the multifamily industry.

A Macro Perspective on the Multifamily Industry with Bruce Fraser (January 2024), https://www.youtube.com/watch?v=YIxjHubJVTk&list=PLpIlJqWWxFgDbE_uPPMFQlFsmEhuQ24j_&index=8

^[2] A deep dive into how Ann-Marie Bomba was able to leave her 9 to 5 to start her own management company.  

Trial by Fire: One Client’s Journey to Becoming Her Own Boss, (November 2019), https://www.multifamilyaccounting.com/blog/trial-by-fire-one-clients-journey-to-becoming-her-own-boss

^[3] See how industry leaders are finding succuss by vertically integrating ownership and property management.

Is Self-Managing Your Multifamily Properties the Key to Success?, (March 2024), https://www.multifamilyaccounting.com/blog/is-outsourcing-your-multifamily-properties-the-key-to-success

^[4]  Read More “Stellar Residential and Ascent Multifamily Accounting A Partnership Driving Success”  (February 2024), https://www.multifamilyaccounting.com/blog/stellar-residential-and-ascent-multifamily-accounting-a-partnership-driving-success

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