Without a doubt, owning and managing any type of rental housing can be challenging. However, owning and managing a luxury apartment community can be even more demanding.
Prospects seeking to live in a luxury community expect the latest amenities, beautiful interiors, and superior management and service. These residents are willing to pay a premium for the lifestyle and convenience an upscale property offers, and so they expect the property to provide value for their money. That’s why hiring an experienced and quality property management firm is essential to the ongoing success of an apartment community, especially in the luxury category.
A high-quality property manager enhances the value of a building, which in turn benefits an investor's bottom line. From common-area amenities to individual apartments, a top-performing property manager keeps a community in prime condition, maximizing value to yield higher rents and increase profit during ownership. They’ll also command a larger return when the investor is ready to sell. Here’s how.
Leasing and Retention
In today’s digitally driven world, prospective residents first look to the internet when deciding where to live. It’s imperative for property managers and their teams to have an online presence along with a definitive plan for how to manage it. It takes skill and dedication to manage and oversee the online aspects of a community, from the website and resident portal to social media and reputation management.
Many property management firms target their marketing to the demographics best suited for the community by highlighting amenities, apartment features, and neighborhood attributes to attract potential residents. This makes for a satisfied and, likely, long- term resident. Reduced resident turnover and shorter vacancy cycles are good conditions to have—and good property managers will have a tried-and-true resident-retention formula.
Property management firms also handle the leasing process, which includes performing renter background, credit, and criminal checks. Hiring a property management firm can also help shield you from unqualified prospects, rental scams, and potential lawsuits by keeping your company compliant with the latest landlord–tenant laws and federal protections related to housing.
Professional property management companies tend to have established and trusted vendor relationships. Those vendors can provide discount or bulk pricing and possibly discounts from insurance companies to get you the most for your money. They utilize the latest software, too, which can provide key metrics to monitor maximum performance in both revenue and expenses.
With the demand for luxury apartments on the rise, renters expect a higher level of competency and sophistication from on-site staff. Luxury communities require expert knowledge of property management due to the additional detail and responsibility involved in the venture. Trends show that residents expect cutting-edge amenities, including smart features, in their unit, which requires extra oversight, maintenance, and an evolving knowledge of the wants and needs of today’s renter.
There are both long-term and immediate benefits that come from hiring a quality property management firm to oversee your investment. It will generate a return on investment that's well worth the initial expense. It reduces stress, increases your freedom, and gives you confidence that your investment is being well taken care of while you’re making money from it.
Every experienced investor understands that time really is money. Selecting a credible property management firm to manage your luxury property assets can afford you more time to focus on new business that can help build your portfolio and your long-term success.
View original article by Multi Family Executive here