Leonardo247’s Daniel Cunningham is joined by Toni Blake, thought leader and national speaker, for a special episode of Apartment Academy, live on LinkedIn. These two industry veterans discussed the future of the rental market in 2024, their battle-tested strategies to safeguard rental income in today’s market, and the evolving concept of homeownership.
In case you missed it, you can watch the entire event here: Defending NOI in a Flat Market
The Crystal Ball – 2024 Market Outlook
The rental market is shifting. Single-family housing, realtors, and homebuilders are playing an increased role in defining the market. While several sources indicate that multifamily housing is maintaining around 94% occupancy with moderate growth, there is a growing consensus a softening market may be on the horizon.
One concerning factor is the impact of inflation, which, despite appearing flat overall, affects property assessments, taxes, interest rates, and insurance costs. Moreover, a notable influx of new rental units is reshaping the multifamily landscape, posing both opportunities and challenges.
With rental markets becoming increasingly competitive, protecting your property’s profitability, also known as Net Operating Income (NOI), has never been more critical.
Maintaining rents amid potentially challenging economic times can be difficult for property owners. Daniel and Toni recommend property owners lead with their humanity and values rather than relying solely on incentives like price concessions. Create an experience that uplifts the human heart, reduces stress, and celebrates residents’ lives on their journey to finding a new home.
Focus on culture and character in property management. The only position in property management that consistently generates income is leasing, highlighting the significance of having a well-trained leasing team that adds value. Businesses that are transparent about their values, practices, and community involvement can better gain residents’ trust.
The concept of “face-forward marketing,” wherein the team’s faces and core values should be prominently featured in marketing materials. Toni suggested creating a “culture wall” to showcase the company’s values and contributions, both for residents and staff.
Renting as “The NEW American Dream”
In this section, the conversation took a more practical turn with Toni suggesting a paradigm shift in marketing and educating residents. It’s important to convey the value of renting beyond just the cost. Property management teams should emphasize the expenses property owners cover, such as property taxes, maintenance, and insurance.
Toni proposed sending quarterly emails to residents detailing the annual costs of these expenses to build appreciation and respect for property management teams. By sharing this knowledge, residents can gain a better understanding of the true value they receive with their rent payments. This approach can also encourage more responsible and accountable behavior among renters.
In the ever-evolving rental market, it’s crucial to approach challenges with innovative strategies that emphasize culture, values, and relationships. As the industry continues to grow and adapt, building trust and delivering an exceptional resident experience remains paramount. By redefining value, property managers can navigate a flat market successfully and continue to defend NOI.
This insightful discussion at the “Defending NOI In a Flat Market” event provides a roadmap for property managers and investors looking to thrive in today’s multifamily housing landscape. Embracing these concepts can lead to a reinvigorated approach to property management, emphasizing culture, trust, and the true value of their communities.
Want more from Toni? Download the “Defending NOI in a Flat Market” ebook today.
Follow Toni Blake on LinkedIn: https://www.linkedin.com/in/toni-blake-43011a3/
Follow Daniel Cunningham on LinkedIn: https://www.linkedin.com/in/cunnuh
For even more operations & maintenance tips…
- Check us out on LinkedIn: https://www.linkedin.com/showcase/apartment-academy/
To request the entire episode transcript, visit us here: https://info.leonardo247.com/aa-request-a-transcript-