Interview With Greystar Regional Property Manager, Derek Tarrant - Trends in Raleigh NC

Had the pleasure of interviewing Derek Tarrant, CAPS, CAM Regional Manager with Greystar . Derek brings a WEALTH of knowledge within Property Management and the Raleigh, NC market. In this interview we cover areas such as trends in Raleigh, how to retain residents and property management ins & outs. Derek is one of the leaders in the market and has won many awards during his time such as the 2018 Operational Excellent Award & 2016 Manager of the Year Award. He is also part of the Triangle Apartment Association and is on the Education Committee.

How did you get your start in real estate?

Worked in hotels for 3-4 years and earned a degree in Hospitality @ East Carolina University. Happen to have a twin brother who is a Maintenance Supervisor in the Residential Sector of real estate. My brother was raving how great the multifamily side was and how much opportunity there is so I decided to jump on over and it was a great decision!

What do you love most about what you do? Is there anything that you would change?

Every day is different! There is a fundamental need as far as what we are offering. Everyone needs housing. There is a beauty of watching the cities grow for the markets that I have overseen. Its exhilarating to see the boom that is happening in some of these cities. I love being part of it. Also, love problem solving which is huge part of my role and I am very much driven by the business aspect of what I do.

What I would change is to make housing more affordable all the way around. There is a true lack of affordable housing. When I say affordable housing I do not mean government mandated. It comes from a viewpoint of having housing at a range of price points to give everyone equal footing.

Raleigh is one of the hottest if not the hottest markets in the nation. Why is that?

There are many things but a couple things stand out for me:

1. Some of the best colleges and leading hospitals are located in Raleigh. In the Triangle you have Duke, UNC & Wake Forest. Also, the local school system is terrific. One of the best in the state, if not the country.
2. Was recently ranked as the top place to retire. You have people that leave expensive cold areas such as Boston & NY to places such as Florida. They end up leaving Florida because it is crowded and hot and humid. We see these people end up in the Raleigh area since it is a fun place to live that is affordable and has 4 seasons.

What are the biggest trends taking place in the Raleigh market?

There are only 2 high-rises downtown. 6+ are coming the next 2 years. As Raleigh continues to grow there is a demand for housing so you have to go vertical to fit those people coming in.

Downtown Raleigh is a really happening place right now and is attracting a lot of people to the Downtown scene. You will start to see everything be over amenitized from golf simulators to kombucha bars.

Clubhouses are starting to go away and instead we are seeing a co-working type of space being put in residential communities since so many people start working from home once COVID hit.

Another interesting thing we are seeing is the "Build to Rent" concept of these large developments of SFH's and Townhomes built to rent and not be sold.

How do you ensure high resident retention rates for your properties? What strategies do you use to reduce resident complaints?

One key thing we do is collect data through an annual survey. Usually we get over 300K replies with this. This helps us stay on top of what residents care about and what improvements need to be made. Top 2 requests we see every year is soundproofing and high end dryers.

When it comes down to it it's all about creating an incredible resident experience. The more proactive we are and the better our resident experience is the higher our retention will be. It is also extremely important that the people in the building feel connected and you create a sense of community. Many residents choose Apartment communities for the experience and social aspect of the community.

What are some of the most important skills to have to be a Regional Property Manager?

Compare this to waiting tables. When you wait tables you have mutiple tables and need to be able to juggle multiple things at once and always know what is going on. You need to be able to quickly assess where at each table is at in the dining process. Multi-tasking is key.

Furthermore, you have to be flexible and understanding since things happen. You cannot be black and white as far as your thinking. Need to be able to see the gray area and be adaptable and flexible.

How do you utilize technology to your advantage in order to help make your life easier as an RPM?

Microsoft Teams has helped tremendously since it is a cloud system and I can access this from anywhere. It is also great from a collaboration standpoint such as real time sharing, taking meetings...etc...

Active Building from Real Page has been great as well It is used for resident engagement. This boomed during Covid since people were not leaving the house and these virtual nights started to happen through Active Building.

Lastly, there is also a big push towards having Managed Wifi. Residents hate having to come in and deal with the internet company to get things set up. We want to make the move in and overall experience as seamless as possible.

If you are a new investor to the Raleigh market what are some key considerations to take into account when acquiring a property?

If I was investing today I would go for a middle of the road deal. B properties that need some upgrades and can move the community into a B+ property. B properties have the lowest vacancy and you can easily upgrade year over year and make some good money.

Also, I see a ton of opportunity in the suburbs of Raleigh since Raleigh can only hold so much people. This opens up opportunities within the nearby suburbs. I think if you get in now you will have a great return 5-10 years from now.