Dec 16, 2019
Our regional VP Shane Robinson recently chatted with GlobeSt.com about his multifamily predictions for 2020. Following is a recap:
What will be the top multifamily operations trends for 2020?
The biggest trends will be related to emerging technologies. With new competition being consistently delivered, the need to stand out will continue to grow. Each year new advances in technology – from smart home apps to mobile leasing software – streamline property operations as well as enhance the living experiences of our tenants.
Today’s residents are looking for convenience in addition to lifestyle, and operators will need to keep up with ever evolving technology to meet these expectations.
Other trends which will continue to impact the multifamily industry include shifting demographics, the rise of short-term rentals and the increase in co-living to reduce rental costs.
What trends from 2019 will eventually become obsolete?
One trend that will become obsolete will be the management of the Airbnb situations. Since many cities have been cracking down on this, certain saturated markets like Los Angeles saw a big change in occupancy in the fourth quarter of 2019. While some properties took upwards of a 5% vacancy due to the new enforcement, the long-term gain is communities will no longer be battling with short-term guests and can begin to manage long-term relationships once again.
What were some of the biggest surprises for 2019?
One of of the biggest surprises of 2019 was the strength of occupancy. Many new developments came online, but occupancy didn’t budge. With fewer deliveries scheduled for 2020 versus 2019, I expect occupancy to remain strong.
How are you working with owners today to prepare for expectations next year?
Performance always remains as a top priority for our company. Additionally, we will be focused on enhancing our clients’ portfolios, allowing growth and expansion to occur in our current markets while exploring new markets.
What challenges do you expect to see in 2020?
Unchartered or unstable markets, tenant issues, investment needs and compliance requirements are always a challenge – and in constant flux – but we have plans in place to remain competitive and informed in the ever changing landscape of our industry. We are strong advocates of education, which allows us to grow both individually and as an organization. With this in mind, we will continue to work with our teams to successfully overcome the challenges of change.
Some are expecting a recession in 2020. Do you think that property management will become more important in a down cycle?
Absolutely – a good property management firm saves you money in the long run, which is especially important when the economy is unstable. Key benefits of a property management firm include being able to retain quality tenants, implementing brand/property enhancements and having the resources to mitigate liability. Additionally, an established property management firm has access to a wide array of professional contractors/resources – ultimately lowering maintenance costs. Hiring a good property management firm is a forward thinking move and, quite simply, a solid investment.
About Sunrise Management
At Sunrise Management, we pride ourselves on delivering exceptional service for multifamily apartment home communities with the highest level of care. We strive to establish a top-tier role in our industry through a people-centric culture of hospitality, trust, innovation and respect that inspires loyalty and delivers a positive living experience [PLX] to our customers. We currently serve communities throughout the southwest including Arizona, California, and Nevada.