Episode 79: Opportunities in Mid-market Multifamily Ft Bob Hansen
Dec 7, 2023
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Bob Hansen, expert in the mid-market multifamily rental sector, discusses the importance of amenities and value-added services in attracting renters. He also talks about economic factors impacting rental rates and challenges tenants face in affording rent. Hansen emphasizes the need for property managers to focus on the resident experience and leverage technology to meet younger generation's expectations.
Attracting tenants in the mid-market multifamily sector requires offering amenities and value-added services to differentiate from high-end housing.
Property managers should focus on meeting the expectations of the younger generation by leveraging technology and providing a superior resident experience.
Deep dives
The Mid-Market Multifamily Sector and Property Management Opportunities
In this podcast episode, Bob Preston discusses the mid-market multifamily sector and its property management opportunities. This sector focuses on creating affordable housing for middle-income families and typically caters to a broad demographic. Bob Hanson of Second Nature joins the discussion as an expert in addressing this market. The mid-market space encompasses properties with around 2,000 units under management, consisting of class BC operators and garden-style communities. Despite a tightening market and increased vacancy rates, there are still opportunities for property managers to attract tenants and enhance their portfolios. Second Nature offers products and services such as air filter delivery, credit building, rewards programs, and insurance coverage to help operators drive value, reduce costs, and improve the tenant experience.
Challenges and Opportunities in the Mid-Market Multifamily Sector
The podcast highlights several challenges and opportunities in the mid-market multifamily sector. One challenge is the current tightening of the market, with more people sitting on vacancies than in previous years. Economic factors and uncertainties may be discouraging tenant movement and causing occupancy rates to decrease. However, there are still opportunities for property owners and managers to attract tenants through cost, location, and amenities. Mid-market properties often face the challenge of limited amenities compared to high-end luxury housing, but innovative solutions like those offered by Second Nature can provide value to tenants and enhance the tenant experience. Property managers should focus on providing substantial value and meeting the expectations of the younger generation by incorporating technology, convenience, and a superior resident experience.
The Triple Win Approach and Benefits of Second Nature's Resident Benefit Package
Second Nature offers a resident benefit package that provides a triple win scenario for investors, property managers, and tenants. This package includes various products and services that enhance the tenant experience, reduce costs, and improve property performance. For investors and property owners, the package helps mitigate turnover costs, extend tenant stays, and drive profitability. Property managers benefit from streamlined operations and reduced workload through Second Nature's comprehensive management of the package. Tenants enjoy valuable benefits such as air filter delivery services, credit building programs, rewards programs, and insurance coverage. By delivering outstanding value and convenience to tenants, property managers can foster greater tenant satisfaction and retention.
Outlook for the Mid-Market Multifamily Sector and Advice for Property Managers
The outlook for the mid-market multifamily sector remains promising. The affordable prices and broad demographic appeal make it an attractive market for tenants. Property managers have an opportunity to capitalize on the demand and enhance their portfolios by targeting mid-market properties. There is still room for growth and improvement in the sector, especially in providing more amenities and enhancing the resident experience. Property managers should embrace technology, convenience, and the expectations of the younger generation to stay competitive. Second Nature encourages property managers to think about the future state of the resident experience and consider innovative solutions that add value and meet the changing needs of tenants.
Bob Hansen, Principal at Second Nature, joins host Bob Preston to discuss the mid-market multifamily rental sector and its challenges and opportunities. He highlights the importance of attracting renters through amenities and value-added services. Bob also discusses the impact of economic factors on rental rates and the challenges tenants face in affording rent. He emphasizes the need for property managers to focus on the resident experience and leverage technology to meet the younger generation’s expectations. Listen in as Bob Preston and Bob Hansen unpack the mid-market multifamily sector and the opportunities for property managers to grow their portfolios.
Topics Covered 01:45 Introduction and Background 03:45 Overview of the Mid-Market Segment 06:25 Factors Shaping Demand for Mid-Market Rental Units 10:45 Affordability and Tenant Challenges 12:45 Keeping Properties Performing at Optimal Level 17:15 APM Help Midroll Comnmercial 18:30 Importance of Occupancy Rates 19:25 Amenities and Features in the Mid-Market Sector 21:45 Resident Benefit Package and Second Nature's Offerings 31:00 Outlook for the Mid-Market Multifamily Sector
Episode 79 Featured Sponsor: APM Help APM Help specializes in offering property management services, including trust account bookkeeping, daily bank reconciliations, audit and compliance support, maintenance coordination, and more. (https://www.apmhelp.com/)
Shout-out to all of our fabulous Industry Icon Sponsors for supporting our show:
