In September the Nurture Boss Customer Council convened to discuss a wide variety of topics and trends within Multifamily including changing strategies in the apartment industry. One of those topics was understanding how marketing and operation strategies are changing as we see all navigate the new market we are marching into.
The question we asked this group was:
How have the changes in occupancy rates affected your strategies in marketing and operations?
After much discussion on the topic we have distilled the conversation into major themes that surfaced on the changing strategies in the apartment industry.
Changing Strategies in The Apartment Industry
Reallocation Of Budget
As the market moves and renters behavior changes, apartments are shifting where and how they spend their money. We aren’t seeing a shrinking in budget so much as a reallocation of spend. ILS and Marketing spend is on the chopping block as apartments invest more in their residents. Understanding how to and executing on this changing strategy in the apartment industry of keeping resident satisfied is important for ongoing success.
Sharpening Dulled Skills of Marketing and Sales
In the boom of 2019 to 2022 renters were banging down the door of onsite teams to sign a lease. Vacancies were filled fast and rent prices were sky-rocketing. What this meant was that onsite teams no longer had to rely on their skills as a cunning salesperson to get a lease signed. This shift we are seeing of flat or declining rent prices paired with a record year of new development has mean that those sales and marketing skills must be relied on again. Apartments are doubling down on team training and relying more heavily on technology to stay competitive as renters have more options of where to call home.
No surprise to see this headline. High employee churn and difficulties hiring have expedited the movement toward a centralized leasing model. By centralizing your leasing efforts with one team and leveraging new technology you can accomplish the output with one team that used to take many.
Summary: Changing Strategies in The Apartment Industry
My biggest take away from this question of “How have the changes in occupancy rates affected your strategies in marketing and operations?” is that our ability to identify changing winds and roll with the punches is how we continue to be effective marketers and operators. As markets change so does the behavior of renters. Having a sharp onsite team, effective tech stack, and speaking to the needs of renters will always be effective levees against the changing tides. The three things top of mind for smart marketers and operators today are:
- Reallocation Of Budget
- Sharpening Dulled Skills of Marketing and Sales