Centralizing the Multifamily Future

The multifamily industry is facing a future that will include centralization in many of its functions if not most of its operations. A bold statement or prediction but if you look around, it is already happening.

??What exactly is centralization in a general sense??And why does it seem to have a negative connotation to a lot of people, especially associates in the multifamily industry??During the recent 2023 NAA Apartmentalize conference I set out to explore this closer by attending sessions from many experts in the field (listed at the end of the article).

??Centralization is already happening in many other industries across the marketplace including hotels, auto sales, food ordering, home purchasing, insurance, and so much more. The multifamily industry has previously adopted several functions of centralization already such as online lead communication, online leasing, training, online payments, and so much more.

??♂?The customer landscape for the most part is shifting to a different set of expectations when it comes to conducting business with a company.?It was revealed by Ronald Harrington, Tatiana Dwight, and Jessica Eberbach in their session, Employee Perks – It’s More than Healthcare that by 2025 the workforce will be 75% Millennials and Gen Z.?And that workforce will be our customers.?Understanding who these generations are and what they expect should lead us to engaging in centralization soon.

I will use the term “centralization” to describe the general overall topic related to the change in workflow within multifamily operations.

Centralized operations involve consolidating all or most of a company's multifamily operations. This can include functions such as leasing, maintenance, accounting, and marketing.

From the sessions presented, these topics are my main takeaways.

?WHY

• As noted in several presentations, each company should establish a strong why efforts will be made to shift operations to a more centralized model.?As most onsite associates know, they wear a lot of hats diluting their focus.?This vision should come from the top down with team’s involvement.

??♂?CHALLENGES

• Best practices shared from case studies included being methodical, mixing technology, keeping the right team members involved for buy in, engaging with customers, and willingness to revisit and change approach.
• One result of a case study included not rolling it all out at the same time.?This proved very difficult for corporate and onsite associates to manage.
• Keep an eye out for change burn-out.?Your associates and customers may tire of the changes and find it difficult to keep up with the changing workflows.
• Another interesting challenge presented was being prepared to handle the “old school” customers.?Those that want to talk to a human, sign the lease with a pen, or pay with a check.
• For those companies that are Fee Managers, getting your clients to buy in may prove difficult in some circumstances.

??DEFINITIONS – Automation, Centralization, Humanization

• There were several conversations related to specific definitions around centralization.?It seemed important to define within your goal what approach(es) you would like to take.
• Automation – Removing high volume, low value tasks.?One of the comments that I found striking was, “If there are disciplinary actions related to not completing a task, automate it.”?Another comment included, “If you automate on the front end, do not create a manual task on the back end.”
• Centralization – moving tasks performed at the community level to a centralized site.?It was suggested to figure out automation before jumping into centralization.?The tasks and experiences should be frictionless both for the customer and the associate.?In another presentation, centralization was defined as enhancing the customer experience.
• Humanization (Specialization) – where will your team fit into the process.?Allow your current team to be part of the conversation.?Given potential consternation with the topic of centralization for associates, one of the presenters noted that they shared with their team they would benefit by becoming the specialist in a particular area.?This approach would lean on their strengths.

??GOALS

• Through a few case studies, the suggestion was to plan out your goals related to centralization first.?In the two case studies presented a common theme was streamline / efficiency.
• Others wanted to improve customer experience, evolve with the tech times, and merge hospitality and technology.
• Results from this effort with their team in the case study again included a common theme of realized efficiencies and job satisfaction.

????BREAKING THE STANDARD

• This standard of 1:100 will change drastically.
• There will be a no one size fits all.?Considerations for centralization will need to be specific to geography, demographics, and portfolio overall.
• An interesting suggestion included exploring other industries’ models for centralization.?Explore how we can adapt other models to function within the multifamily space.

??STAFFING WORKFLOWS

• What does my future or career path look like once there is centralization??This seems to be a common question asked when initially exploring centralization.?As alluded to before, it becomes an effort of specialization.?The feedback from other case studies included creating new career tracks.?It allowed associates to operate in their gifting, taking good to great, making the best people even better.

??COMMUNICATION

• It was emphasized in all presentations to be consistent with communications not only with the associates impacted but with residents as well.

??WHERE

• Marketing
• Lead Nurturing
• Self-Touring - One of the most interesting phrases I heard was, “curb to kitchen.”?This was the approach to leasing.?This was the goal for touring.?The guest should be able to manage a self-tour on their own and when they wanted to take it.?Interestingly one of the most popular times for a self-tour was at 7am.?Guests wanted to test out the commute time after touring the community.
• Applications
• Move In Workflow – digital checklist with push notifications for applicant to complete prior to move in.
• Renewals
• Resident Notification
• Charges and Payments
• Work Orders – Tech that provides suggested solutions for the resident to attempt before engaging with a maintenance tech – described as a self service maintenance model.
• Turn Overs and Make Ready
• Move Out Workflow – creating a digital push notification of completed tasks (turned in keys) and confirmation of receipt.
• Accounting – Accounting Month End, Resident Final Account Statements
• Collections

??TECHNOLOGY

• One of the underlining questions becomes, what does the tech look like to accomplish this future forward mission for multifamily? There are a number of options that accomplish pieces and parts of the centralization vision.
• Wil there be a tech stack that can combine it all in one - from start to finish? Or will it be a buffet of options scooped on a plate hoping it all pairs well together.

Bottom line, there are several benefits to centralizing multifamily operations. First, it can help to improve operational efficiency. By centralizing resources, operators can streamline processes and reduce duplication of effort. This can lead to cost savings and improved resident satisfaction.

Second, centralized operations can help to improve compliance. By having a single team responsible for all aspects of operations, operators can ensure that they follow all applicable laws and regulations.

Third, centralized operations can help to improve communication and collaboration. By having a single point of contact for residents, vendors, and other stakeholders, operators can improve communication and collaboration. This can lead to improved decision-making and a more efficient overall operation.

The multifamily industry is changing rapidly. In order to meet the challenges of the future, operators need to be willing to embrace new technologies and practices. Centralized operations are one such practice that has the potential to significantly improve operational efficiency, compliance, and communication.

I want to thank each presenter in the sessions noted below for sharing and educating us on their experiences and insight. Look forward to seeing where the centralization takes us in the multifamily industry - and you are its pioneers.

Many Paths to Efficiency: How Are Operators Centralizing Services

• Chase Harrington , President at Entrata
• Suzanne Hopson , President at Tricap Residential Group
• Kimberly Nicholson , Sr. Director Technology Services at Greystar

Centralization: The Tech That Matters No Matter Your Definition

• Tyler Christiansen , CEO at Funnel
• Scott Moore , CTO at Cortland
• Mike Hogentogler , COO at LCOR
• John Helm , Founder RET at Ventures

Automate Routines, Humanize Exceptions

• Richard Malpica , Vice President
• Taylor Blades , Vice President at Ross
• Justin Wald, ARM , Vice President at Berkshire
• Jaymz Yates , Director Technology
• Kim Young, MMLP , Vice President at Fogelman

Is CENTRAL-izing a Perk?

• Andrew Bowman, VP Industry Principal at RealPage
• Gina Carter , VP Portfolio Operations at Blue Ridge Companies
• Kortney Balas , SVP Strategic Services at JVM
• Connie Aldape , Director Revenue Operations at Cushman & Wakefield

Maintenance Centralization: The Evolution of Multifamily Operations

• Jindou Lee , Co-Founder & CEO at HappyCo
• Heidi Turner , Founder at Blanton Turner
• Dan Regan , Director of Integrated Ops at Mark-Taylor Companies

AI in Operations: It’s More than Leasing

• Ellie Norton, CPM? Candidate, CAPS, CAM , VP of Operations at Pegasus Residential
• Dustin Skinner , VP of Systems and Technology at The Life Properties
• Sudip Shekhawat , CTO at LeaseLock

Employee Perks – It’s More than Healthcare

• Ronald Harrington, MA, CAM, CALP , Experience Specialist
• Tatiana Dwight , Talent Acquisition Specialist at RADCO Residential
• Jessica Eberbach, CAM, ARM? , VP, People and Culture

You can still download all the presentations on the NAA Apartmentalize app.

Want to understand how simple and easy centralization and automation (AI) is impacting our experiences? ?This article outline was generated with Google’s Bard AI with edits and specific notes added by me. ?This collaborative effort created a faster and smoother approach to writing an article.

What are your experiences and feedback related to Multifamily centralization?