RICHARDSON, TX—Conventional wisdom has it that the best multifamily investment to make is in one of the 14.5 million units located the 62 largest metro markets in the US that has a population greater than 1 million. Most of these communities are professionally managed with a minimum of 150 units. Even so, investors are keenly aware their investments need to perform at a high level.
There are 3 strategies that will ensure a multifamily asset performs well, says David Polewchak, industry principal at RealPage. These are developing efficient and effective operation teams, enabling transparency and visibility into asset performance, and effective revenue and expense oversight.
According to Polewchak, each of these strategies are complex, multifaceted, and interconnected. For example, developing efficient and effective operation teams calls for a combination of training, enabling tools and vision, but is also achieved by having visibility and effective financial oversight of the asset.
Data is Key
“Performance of an asset can also be measured in a variety of ways, whether that is operationally or financially, it just depends on your definition of performance, but you can’t have one without the others,” explains Polewchak. “From what I have experienced, asset performance is directly linked to operational and financial measures, and thus the need to analyze and understand the components that impact each asset’s performance is critical.”
Tools that provide real-time knowledge, visibility and analytics will help operators execute asset strategies swiftly and efficiently. As a result, technology and data have become necessities in multifamily and real drivers of asset performance.
“Data plays a large role in all three of these strategies as a catalyst of performance by unlocking valuable information that ultimately can ensure asset success,” says Polewchak. “Data-driven transparency into the key drivers of operational teams as well as asset financial and revenue performance sets a course towards ensuring overall asset value is achieved.”
https://www.globest.com/2019/09/12/3-strategies-for-peak-multifamily-performance/?kw=3%20Strategies%20for%20Peak%20Multifamily%20Performance&utm_source=email&utm_medium=enl&utm_campaign=nationalamalert&utm_content=20190912&utm_term=rem&enlcmp=nltrplt4 “SOURCE: GlobesSt.”