The multifamily market has gotten intensely competitive, and margins are tight. Property management companies (PMCs) can’t afford under-occupied locations. But keeping them occupied while maintaining profitability has become a massive challenge.
“Property owners and managers across all property types and portfolios in multifamily are experiencing an increase in the costs of labor, insurance, taxes and energy,” notes Zlatko Bogoevski, founder and CEO of BetterBot, a digital automation and AI platform provider to the multifamily industry. Historically, PMCs could raise rents to absorb rising expenses. But post-COVID, Bogoevski adds, “What we are seeing is that if you continue to increase rents, you end up decreasing your occupancy rates. Now there's pressure to keep rents flat or, in some markets, to reduce them, in order to maximize occupancy.”
That’s where digital technology can lend a hand. Tech has benefited many aspects of the multifamily industry, “from construction techniques to power management to smart buildings,” Bogoevski notes. “Luckily, some of the innovation that we're seeing today, particularly in AI, addresses the pain points that PMCs are currently facing.”
Here are five ways that technology designed specifically for the multifamily market can help PMCs keep their properties occupied while managing competitors and expenses.
- Connecting with potential renters
Data-driven technology enables online apartment hunters to discover a PMC’s properties and what they offer. These connections can occur across a variety of digital channels while providing immediate responses to an apartment hunter’s needs.
“When prospects are in the initial stages of a search, they prefer digital communication,” Bogoevski says. “If I’m a prospect, I don't really need to talk to a human to find out about amenities and costs. I'd much rather qualify myself via digital means.” - Doing more with less
With budgets tight, PMCs need to do more with fewer employees. But that can result in delays in responding to inquiries, among other problems. AI chatbots and platforms, by contrast, can respond almost immediately to inquiries, saving leasing agents time while still getting apartments shown.
“We're seeing companies optimize how they spend on marketing, how they spend on labor costs by using AI technology,” Bogoevski says. “They can maximize their return on investment.” - Saving time and money
Time is another resource PMC executives find is in increasingly short supply. Technology can speed up numerous operational processes and, in some cases, reduce their frequency. Using this tech allows employees to spend less time on repetitive tasks and focus more on delivering value.
“If a leasing agent is focused on bringing prospects in the door, that may mean that they’re answering the same questions over 50 times a day,” Bogoevski notes. “And all that time spent may result in only one prospect coming through the door.” Reallocating agents’ time saves money through greater operational efficiency. - Interacting with potential tenants 24/7
Digital technology can manage outreach to potential tenants and answer frequently asked questions on their schedule. Apartment hunters typically want to move fast, and they may not be looking during regular office hours.
“AI technology can be leveraged to give exact answers in real time, 24/7,” Bogoevski says. “Prospects are happier because they get their questions answered. They also can schedule a property tour at the same time.” Meanwhile, leasing agents can provide face-to-face contact when necessary — during the physical tour, for instance. - Lowering eviction rates — and keeping properties occupied
Not every potential tenant is a good fit for a property. Tech tools can identify the right renters and winnow out potentially problematic tenants. This can reduce the potential for evictions and unoccupied units while increasing renewal rates. That, in turn, can reduce investor risk for a PMC’s property portfolios.
AI-powered technology also can keep new or existing tenants connected and content. “After they sign a leasing application, a digital tool can send them onboarding or moving checklists,” Bogoevski says. “And once they're residents, it can follow up to make sure that there are no problems. Later, the PMC can use AI-powered communication to get them to renew.”
Digital technology tools developed specifically for the multifamily market, especially when they integrate well with existing IT systems, can allow PMCs to do more with less. The right technology attracts, prioritizes and takes action on strong leads while lowering eviction rates and boosting operational efficiency, occupancy rates and marketing ROI. Digital technology helps PMCs achieve all these benefits without increasing headcount or marketing budgets. And in the current market, few multifamily firms can afford to spend more money.
Want to learn more about how technology can help raise occupancy rates and increase operational efficiency? Check out this interview with Brent Williams, chief insider at Multifamily Insiders, and BetterBot founder and CEO Zlatko Bogoevski.
